Ford Motor Co and Mahindra & Mahindra said on Tuesday they would form a joint ve...
) as a partner for developing and selling vehicles in India and emerging markets using the U.S. automaker’s production facilities in the country.
Under pressure from shareholders to make profits, Ford has been globally restructuring its businesses with an aim to save $11 billion over the next few years. Ford, which has invested more than $2 billion in India over two decades, will take an $800 million to $900 million non-cash charge to reflect the writedown of its Indian assets, it said in a separate exchange filing.
“I think it’s a disappointment when I see Ford sitting at the passenger seat, while Mahindra drives, if that will be the arrangement,” said Gaurav Vangaal, senior analyst, automotive forecasting at consultancy IHS Markit. The new entity, which will be operationally managed by Mahindra, will develop and sell Ford brand vehicles in India and export Ford and Mahindra brand vehicles to emerging markets.
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