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A Strategic Alliance

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A Strategic Alliance

alued at Rs 1,925 crore, the new partnership between M&M and Ford Motor Company will drive enhanced competitiveness through greater economies of scale across the automotive value chain, including optimized sourcing, product development, use of relevant technologies and building a global network. The partnership will also allow Ford and Mahindra to offer new products to customers faster and deliver profitable growth to both companies.

On this profitable partnership, Anand Mahindra, Chairman, Mahindra Group, said, “Mahindra and Ford together is a testament of cooperation and mutual respect between the two companies. Our combined strengths – Mahindra’s expertise in value-focused engineering and its successful operating model, and Ford’s technical expertise – global reach and access to future technology – are a potent recipe for success. At its core, the partnership will be driven by shared values of both companies, which are focused on caring for our customers, associates, and our communities.”

Adding to this, Jim Hackett, President and CEO, Ford Motor Company, said, “At Ford, our purpose of 116 years has always been to drive human progress, and that won’t change. To continue to do that, we need to evolve with new and faster ways of not only delighting our customers around the world, but also solve the very different needs. Strong alliances like this, play an important role in assuring we continue to achieve our vision, while at the same time, staying competitive and delivering value to our global stakeholders.”

While, this isn’t the first time that M&M and American multinational automaker, Ford Motor Company have joined hands, (the two auto giants had announced a strategic alliance in September 2017, followed by a declaration regarding powertrain sharing and connected car solutions in October 2018), this new joint venture is expected to achieve enhanced efficiencies to strengthen the Ford brand in India. In addition, this partnership will also be a catalyst for growth for the Ford and Mahindra brands in emerging markets, which are presently growing at double the rate of the global industry. Dr Pawan Goenka, Managing Director, M&M, said, “The joint venture will have a distinct product portfolio with shared platforms and powertrains, the newest technology, high quality and engineering standards from both Mahindra and Ford at optimized costs. This winning combination will enable the JV to successfully position its vehicles in India, as well as unlock the potential of other highly competitive emerging markets.”

With the signing of the new definitive agreement, Ford and M&M have decided on the following –

The two companies will jointly develop, market and distribute Ford branded vehicles in India, as well as distribute both Ford and Mahindra branded vehicles in high-growth emerging markets around the world
Mahindra will own 51% controlling stake, while Ford will own 49% stake
Ford will transfer its India operations under the joint venture to M&M, including their personnel and assembly plants in Chennai and Sanand, Gujarat. However, Ford will retain the Ford engine plant operations in Sanand, as well as their Global Business Services unit, Ford Credit and Ford Smart Mobility
The JV will be operationally managed by Mahindra, and its governance will be equally managed by representatives of both the companies
The partnership will be responsible for growing the Ford brand in India and exporting its products to Ford entities globally
Ford and Mahindra will jointly introduce three new utility vehicles under the Ford brand, beginning with a new mid-size SUV, that will have a common Mahindra product platform and powertrain
Mahindra and Ford will collaborate to develop electric vehicles to support the growth of sustainable mobility across emerging markets
Greater economies of scale will be driven across the automotive value chain, including sourcing, product development and access to relevant technologies
The partnership will use the Ford brand distribution network in emerging markets to extend support for the export of Mahindra products, in addition to Ford branded vehicles
Ford’s newly established International Markets Group (IMG) business unit will play a key role in the process
In addition to Ford Ranger and the US import businesses in IMG, the partnership will add to IMG’s portfolio vehicles specifically tailored for emerging markets
Under the new structure, Ford will continue its support for all Corporate Social Responsibility (CSR) initiatives

Jim Farley, President, Ford New Businesses, Technology & Strategy, said, “The creation of this JV is a pivotal moment in both our companies’ histories. Strong alliances such as this, will play a crucial role for Ford to profitably compete in the high-volume, affordable vehicle segments which are so popular with our diverse customer base. By combining our respective talents, we will offer more vehicles to customers in more places than ever before, and deliver profitable growth to both Ford and Mahindra.”

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Volvo is paying plug-in hybrid drivers for all the electricity they use

As Volvo sees it, plug-in hybrids are the path toward achieving one of its high-aiming carbon-reduction goals—making fully electric cars half of its sales by 2025. To do so, the automaker plans to nudge its portion of PHEVs in the U.S. over the next 16 months, to 20 percent, up from about 4 percent today.

But it also knows that plug-in hybrids only serve their purpose (including as segue ways to all-electric) when drivers of PHEVs actually plug in. That’s the onus behind an unusual new program announced by Volvo Wednesday.

The gist of it: Volvo will cut owners a check at the end of one year based on how much they’ve been plugging in.

Using the vehicles’ On Call capabilities—no additional subscription required—Volvo will see how many kilowatt-hours of electricity the vehicle has used. The company will simply take that number and multiply it by the national-average price per kilowatt-hour, to arrive at the amount paid back to the owner.

2018 Volvo XC60 T8

Volvo is aware that buyers with cheap electricity are going to make money from the program, while those with particularly expensive residential electricity aren’t going to recoup all of their charging costs. According to the U.S. Energy Information Administration, the national-average price of residential electricity is 13.27 cents per kilowatt-hour. If 8.0 kwh is now usable (the usable capacity in Volvo’s latest XC90 T8 plug-in hybrid), and owners are able to plug in twice a day, that’s potentially about $773 for the year.

The company currently isn’t actually able yet to read cumulative vehicle power used via On Call, but it will be sometime next spring. Starting at that time, and including all the vehicles going back to October 1, new plug-in hybrid models will be included in the program on a rolling basis.

So far the figure Volvo does have is one based on drive time. It’s found that globally customers are using plug-in electricity 41.4 percent of the time.

2018 Volvo XC60 T8 R-Design with Polestar optimization

In studying some of the first buyers of Ford’s Energi plug-in hybrid products, in 2013, Ford found that drivers were covering more than 60 percent of their overall mileage on plug-in electricity. Those were early adopters and particularly eager to plug-in whenever possible, but other studies have suggested that buyers of luxury-brand PHEVs aren’t plugging in as often.

With Volvo incentivizing plugging in, instead of the vehicle itself, it might be able to boost the demand for the vehicles in a way that can help dealerships sell the idea, without going down a slippery slope with high incentives, bruised residuals, and an artificial market.

As Volvo looks toward electric—starting with the 2021 XC40 Recharge—it’s one way it can potentially sell drivers on it, too, and reward them for making a habit of plugging in.

Ford Customers Are Covered with Industry-Leading Electric Vehicle Charging Access – At Home and On the Road – Via FordPass

Ford Charging Solutions ecosystem including FordPass app lets customers easily locate, navigate to, pay for and monitor charging using Europe’s largest public charging network Ford Connected Wallbox to provide safe, powerful home charging solution combined with FordPass charge tariffs Charging with up to 150 kW at an IONITY charging station, Ford’s new Mustang-inspired all-electric SUV… Continue reading Ford Customers Are Covered with Industry-Leading Electric Vehicle Charging Access – At Home and On the Road – Via FordPass

Ford Introduces North America’s Largest Electric Vehicle Charging Network, Helping Customers Confidently Switch to an All-Electric Lifestyle

Ford is offering its all-electric vehicle customers North America’s largest electric vehicle public charging network, with more than 12,000 places to charge, including fast charging, and more than 35,000 charge plugs – more than any other automotive manufacturer, addressing a big concern for those switching to all-electric cars New Ford all-electric vehicles, including the Mustang-inspired… Continue reading Ford Introduces North America’s Largest Electric Vehicle Charging Network, Helping Customers Confidently Switch to an All-Electric Lifestyle

GM-UAW deal calls for 9,000 jobs, $9,000 ratification bonus, e-truck at Detroit-Hamtramck

CLOSE Joe Krapohl, 64, of Otisville has spent more than 30 years working at GM as a toolmaker. He is a third-generation employee on the strike line outside the Flint Assembly Plant. Phoebe Wall Howard, Detroit Free Press The proposed deal between General Motors and the UAW includes promised investments in U.S. manufacturing that would… Continue reading GM-UAW deal calls for 9,000 jobs, $9,000 ratification bonus, e-truck at Detroit-Hamtramck

Car parts firm to shut with 125 jobs to be lost

A car parts firm has announced it will close in 2021, with the loss of about 125 jobs. Hi-Lex Cable System Company makes door and window parts and cables for cars at its plant on Baglan energy park. Management at the firm, which supplies Honda, Audi and BMW among others, said it did not anticipate… Continue reading Car parts firm to shut with 125 jobs to be lost

Ford Elevates Customer Experience by Making FordPass Remote Features Complimentary; Company is First to Offer Connected Service for No Charge

FordPass, powered by FordPass Connect, delivers a single mobile platform where owners can remotely start/stop/unlock their vehicles, schedule maintenance and chat with Ford Guides, along with other features; introduced in 2016, the number of subscribers has been increasing every year FordPass, powered by FordPass Connect service, previously available through one, two or five-year trial subscriptions… Continue reading Ford Elevates Customer Experience by Making FordPass Remote Features Complimentary; Company is First to Offer Connected Service for No Charge

Self-Driving Requires Unprecedented Collaboration

By: Raj Kapoor, Chief Strategy Officer; and Luc Vincent, EVP Autonomous Driving In conversations about self-driving cars, people often talk about the rush to full autonomy like they’re commentators on a race — tracking new developments in technology, analyzing the strategic moves of the companies hurrying to be first. It’s easy to get caught up… Continue reading Self-Driving Requires Unprecedented Collaboration

Ford Pilots Blockchain Tech to Promote Cleaner Air in City Centres; Extends Hybrid Electric Transit Trials to Cologne

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Ford Pilots Blockchain Tech to Promote Cleaner Air in City Centres; Extends Hybrid Electric Transit Trials to Cologne

Ford pilots innovative geofencing and blockchain technology to ensure vehicles operate efficiently in city centre low-emission zones
Transit Custom Plug-In Hybrid trials in Cologne, Germany, complement tests in London and Valencia, Spain, designed to optimise environmental benefits of such vehicles
New plug-in hybrids target electric-only zero-emission NEDC driving range of 56 km (35 miles); 1.0-litre EcoBoost engine charges battery when needed, extending range to more than 500 km (310 miles) NEDC
Ford Transit Custom is the first vehicle in its class to offer plug-in hybrid technology, and is available to order now with first deliveries by the end of the year; all-electric Transit anticipated in 2021

Ford today extends its European plug-in hybrid electric vehicle (PHEV) trial to Cologne. The study, which is also testing Ford P..