27 December, 2007 : Ford plans to tie up with Mahindra & Mahindra in India all over again. Ford is looking at spreading its wings in Russia and India. Its partnership with Chinese auto group Chang has helped them with good growth and market share. According to Alan Mulally, Ford CEO, the company is looking to take the partnership route in India. It is possible that the two may discuss entering a project-specific tie-up, similar to the Bajaj-Renault small car alliance.

In November 1995, US-based Ford Motor Company, the world’s second largest automobile company, ventured into India along with M&M to form a 50:50 joint venture, which rolled out the Escort sedan. While it subsequently bought over M&M’s stake in the venture, Mahindra continues to enjoy close ties with Ford. M&M decided to focus on utility vehicles after its exit from the venture, but with its tie-up with Renault for Logan, it has re-entered the car segment in style.

Its current tie-up with Renault will not have any issue with this venture. In an interview with a leading business daily last week, M&M auto division president Pawan Goenka stated that “the contract between the Renault and M&M is very transparent and well- defined and the company is open to more joint ventures. The only defining clause is that neither can get into a segment that competes with the Logan.”