Both Mahindra-Ford have resorted to retaining independent product DNA without cross-badging.
As per a recent announcement made by Mahindra, the M&M-Ford joint venture will not cross badge products for the domestic market. It is to be noted that the JV is not shelved and will continue to bring both businesses closer on product development, sourcing and technology but both companies will retain independent product DNA without resorting to cross-badging. The company believes that the customers will see right through it and the entire project will be resort to being just a gimmick.
The sharing of vehicle architecture, though, will save over $200 million in the next 2-3 years. That is for the domestic market because for buyers abroad, Ford is considering using Mahindra products and re-badge them as theirs to expand its emerging market business.
As product lifecycles shrink and the novelty of new products wane within six months, vehicle makers have had to constantly upgrade and launch new products. Mahindra hopes that the JV will help accelerate product launches and plug gaps in its portfolio.
So what will happen to Ford’s Aspire EV? Well, it will be sourced by Mahindra. Even the ‘C segment’ SUV based the new generation Mahindra XUV500 architecture — codenamed W601 — will be shared with Ford. As of now, it is codenamed as W605. On the other hand, a ‘B segment mid-size SUV’ based on Ford architecture with Mahindra, is in the final stages of approval. By sharing vehicle architecture, both companies will individually save about Rs. 400 crores on one product each.
Apart from the shared architecture, Mahindra hopes to get a chunk of Ford’s global sourcing capability, including China and other emerging markets. It will aid the homegrown company in high-tech product sourcing for the foreign market while at the Indian horizon, Mahindra already has an edge.
Mahindra-Ford Cross Badged Cars
– Mahindra, Ford won’t cross badge cars for India
– Both companies will still share vehicle architecture
– Mahindra hopes to get a chunk of Ford’s global sourcing capability, including China
Source – ETAuto