Ford and Mahindra collaborate to build electric vehicles

Ford Motor Co. and Mahindra & Mahindra Ltd. on Monday announced the collaboration as a new strategic alliance to exchange technology and cost savings in the development of electric vehicles. The giant deal of Dearborn and Mumbai is being built to tackle regulatory pressure that forces automakers to switch to electric drive in the next decade.

Tinuku Ford and Mahindra collaborate to build electric vehicles

US and Indian automotive companies are collaborating for various activities in an effort to divert their product lines to electric vehicles. Mahindra has global brands and distribution networks, while Ford has strong technology. Ford shares rose 0.5 percent on Monday.

Ford and Mahindra said in a joint announcement that it would look for ways to collaborate on projects over the next three years. The teams from each company will start meeting next week to discuss ways to earn profits in the short and medium term. Both refused about the details of the money.

For Ford, an agreement with Mahindra demonstrates a new strategy for dealing with demand by policymakers in many key markets to remove oil-fueled vehicles and switch to electric vehicles. Ford faces challenges because the development of electric vehicles in the United States or Europe is too expensive for Indian or Chinese customers.