Ford to end independent operations in India

According to a media report, Ford is likely to transfer most of its assets in India to a joint venture with Mahindra. The move is said to be part of Ford's US$ 11 billion restructuring plan launched by CEO Jim Hackett.

The report indicates that the American automaker will give Mahindra a 51% stake in the joint venture and at the same time, it will be able to get its underperforming assets in India off its books.

Over the last 2 decades, Ford is said to have invested US$ 2 billion in India. Yet, the company managed to secure a market share of only around 3%.

Mahindra - Ford's partner in the joint venture will gain access to some Ford models. The carmaker is expected to sell these models in developing markets under its brand. The two companies have also signed a deal to jointly develop a new mid-size SUV for India.

Source: Detroit Free Press