Ford Pursues Cost-Cutting Ventures with VW, Mahindra

Ford Motor Co. is in talks with Volkswagen AG in Germany and Mahindra & Mahindra Ltd. in India to reduce product development and production costs in both regions.

Ford CEO Jim Hackett tells Reuters that both sets of negotiations are going well but declined specifics about the nature and market targets of possible alliances.

Sources tell Reuters that Ford is looking for ways to expand a previously announced partnership with VW to develop commercial vehicles. They say a broader partnership would encompass Europe, South America and other types of vehicles. VW confirms to the news service that it is discussing a possible venture in Brazil.

Reuters says the talks with VW could include shared production facilities that would cut Ford’s manufacturing costs, while giving VW access to rebadged versions of Ford’s popular Transit van and Ranger small pickup truck.

In India, the goals of a Ford-Mahindra venture would be to lower Ford’s supplier costs and develop vehicles that share a common platform, sources tell Reuters. They say the first such vehicle is likely in 2020.