Ford Ready to Merge Indian Operations into JV?

Ford Motor Co. reportedly is close to shifting most of its Indian operations into a new joint venture that would be 51% owned by Mahindra & Mahindra Ltd.

Sources tell Bloomberg News Ford will get equal voting rights and representation on the venture’s board. They say the deal will not include Ford engine plant in Sanand and the U.S. company’s global business services unit in India.

Reuters reported in April that Ford and Mahindra were near a deal to form a venture that would be majority owned by Mahindra.

The companies have collaborated for nearly 25 years, originally to co-produce vehicles in India. In 2017 they agreed to partner for three years on electric car, connectivity and advanced mobility projects. They expanded that alliance last year to work on electric car projects, and to collaborate on a midsize SUV designed for emerging markets.

Ford has invested some $2 billion in India, but it controls less than 3% of the car market there. Bloomberg notes that forming a joint venture will enable Ford to remain in the high-potential market while easing the financial cost of doing so.