NEW DELHI: Ford Motor Co is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that will likely see the US automaker cease independent operations in the country, two sources with direct knowledge of the talks told Reuters.
The US carmaker's Indian unit will transfer most of its current automotive business to the new entity, including its assets and employees, according to one of the sources.The deal is expected to close within 90 days, the sources said, adding the value of the transaction was not yet clear.
Ford has been globally restructuring its businesses with an aim to save US$11 billion over the next few years. Last month, its Russian joint venture said it would close two assembly plants and an engine factory in Russia, exiting the country's passenger vehicle market.India has been a major growth area for global car manufacturers but growth has slowed of late - car sales grew by 3 per cent to just over 3.
Ford sold close to 93,000 vehicles in India last fiscal year, a far cry from market leader Maruti Suzuki which commands a 51 per cent market share and sold more than 1.7 million cars.