Ford Motor—the Dearborn (US) automaker—announces the consolidation agreement with Mahindra & Mahindra, one of the giant auto manufacturers of India. Ford agrees to merge for developing $275 Million giant conglomerate. By signing the merger agreement, ford promises to sell 51% of the business operations to Mahindra & Mahindra, India. The merger holds a vision to market, distribute and develop vehicles of ford brand in all over India and also has alliances in various emerging markets. As the $275 million-worth merger was announced on Tuesday, Jim Hackett—President and CEO, Ford Motors—stated that the merger is now latest for Ford Motors and establishes an $11 billion restructuring prospects.
According to the deals mentioned in merger agreement, Ford will have to transfer its current Indian operations to the merger, inclusive of assembly and personnel plants across Sanand and Chennai. The agreement allows ford to retain its engine plant at Sanand along with Ford Credit, Ford Smart Mobility and Global Business Services unit across India.
Ford Motors has also invested in others start-ups like, Rivian which is the official project of Michigan-based electric vehicle manufacturer. The company also holds a partnership for manufacturing autonomous and all-electric vehicles with Volkswagen. The venture has nearly 14,000 employees across India. This tie-up is latest tie-up for Ford contributing in its $11 billion restructuring plan, according to Hackett.
Anand Mahindra—chairman, Mahindra Group— stated that the merger is a dominant recipe for success. The merger— equally driven by both companies’ stock values—promises to provide better consumer experience to the communities, associates ad customers.
According to Bill Ford—executive chairman, Ford Motors—the ventures have been already working together as a strategic alliance since 2017 and the successful duo has made us more proud by accepting the extension to establish this new giant conglomerate.
Ford’s stock value experienced a nearly 2% fall after $9.19 opening in Tuesday’s intraday trading.