Reports are coming that Ford Motor Co. is set to transfer its assets in India to joint venture Mahindra & Mahindra Ltd after failing a meaningful deal for more than last two decades in the World's fourth largest automobile market.
Reports are also coming that Mahindra is one of the India's largest automakers . Ford motor company . After this joint venture Ford will get equal voting rights and broad representation. This joint-venture can be announce soon after the next week. The compensation is far below 2 billion dollar its poured into India , to achieve India's less than 3% market share. This deal will keep Ford Motor in highly populated market while letting it shares financial burden with Mahindra.
Global car makers are facing tough time making inroads in India as it is dominated by Suzuki Motor Corp with cheap and fuel efficient cars. Reports are also coming that General Motor Corp scrap 1 billion dollar investment in India 2 years ago and stop selling Chevrolet models. The market as a whole are facing challenges like contraction of sales for 10 months and forcing the industry to cut production and jobs .
No comments:
Post a Comment