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Mahindra and Ford made headlines in 2017 when they announced a strategic collaboration that was intended to help both companies grow in specific areas. Later, in March 2018 the two auto giants signed five Memorandums of Understanding (MoU's) on the same lines.
Building on the same strategic collaboration, Mahindra and Ford have now signed agreements on Powertrain sharing and Connected Car Solutions. According to the agreements signed, Mahindra will be supplying Ford with BS-VI emission norms compliant petrol engines.
Ford has highly acclaimed petrol and diesel engines in the Indian market. The 1.0-litre EcoBoost engine has won praise from critics all over the world and the Indian market just loves the 100bhp diesel engine found under the hood of Ford's cars.
Ford also recently launched the Dragon series of petrol engines, but seems like Ford need some help from Mahindra, which in itself seems a bit strange. While Ford already has a few petrol engines in the market, selling reasonably well, Mahindra's petrol engine sales are too few to even consider.
Through this agreement though, Mahindra would also gain experience in producing petrol engines and would also help Ford strengthen its petrol engine powered vehicle portfolio.
Jim Farley, Ford executive vice president and president of global markets said, "Today we go further in delivering even greater value. With our collaboration in powertrain and connected car solutions, we will deliver an affordable portfolio and enable our Indian consumers to get behind the wheel, feeling more confident and connected."
Mahindra will develop a low-capacity petrol engine to be used by Ford and this would be ready before 2020. The two companies also announced the development of a new telematics control unit that would eventually be used across vehicles from both the companies.
Thoughts On Mahindra Supplying Engines To Ford
Mahindra and Ford are among the top automotive manufacturers in India and are both formidable players in International markets as well. Through these agreements, Mahindra and Ford can make use of each others' strengths and work on each others' weaknesses.