Ford Expands Partnership With Indian Car Maker
March 22 2018 - 11:35AM
Dow Jones News
By Christina Rogers
Ford Motor Co. is taking steps to solidify its partnership with
Indian auto maker Mahindra & Mahindra Ltd. by jointly
developing several new models, an attempt at lowering costs in an
important emerging market that has long been a challenge for many
car makers.
The Dearborn, Mich., based car maker said Thursday it would
develop new SUVs and a small electric car through the partnership
and sell them in India and other emerging markets where demand is
high for low-cost cars that return only slim margins.
The move is part of a broader strategy under Chief Executive Jim
Hackett to cut costs by using partnerships to help defray the hefty
expense of engineering and building new models.
Ford has distance itself from its crosstown rival General Motors
Co. in recent years by deepening its investment in emerging markets
that GM has exited. Last year, GM said it would stop selling
vehicles in India and redirect investment in more lucrative
markets.
Analysts have pointed to Ford's challenges in India as a drag on
earnings and have pressed for more details about how the company
plans to respond.
A once-promising market, India has lately become a drain on
resources for many car makers. While new-car demand continues to
grow, the country is overcrowded with competitors trying to sell
cheap cars. Ford executives say they still see long-term potential
in India, the world's fifth largest car market by sales.
Mahindra is well known in the country, but it has struggled to
establish itself and its lineup of rugged SUVs in more mature
markets.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
March 22, 2018 12:20 ET (16:20 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Ford Motor (NYSE:F)
Historical Stock Chart
From Apr 2024 to May 2024
Ford Motor (NYSE:F)
Historical Stock Chart
From May 2023 to May 2024