Report: Ford, Mahindra Probe Global Alliance

Ford Motor Co. and Mahindra & Mahindra Ltd. have begun to explore a partnership that would go beyond capacity sharing in India to a global alliance that includes U.S.-based product development and technology sharing.

Sources tell The Times of India the potential non-equity alliance would coordinate future products with Mahindra’s North American technical center in Detroit. The newspaper’s sources say the partnership could produce an array of global SUV/crossovers and electric vehicles and help Ford build a stronger presence in the Indian market.

Talks are at an early stage, and both companies declined to comment.

The Times says a Ford alliance may be part of a broader Mahindra strategy to establish a production base in Brazil or Mexico. The newspaper notes that the Indian company has said it is contemplating a second “home base” that would involve building a new factory overseas.

The talks between Mahindra and Ford are similar to discussions about a technology and vehicle platform alliance being pursued by Tata Motors Ltd. and Volkswagen AG’s Skoda unit.