MUMBAI, Feb. 12 (Xinhua) -- The Competition Commission of India has approved the joint-venture (JV) between the country's auto major Mahindra & Mahindra and America's Ford Motors that entails a transfer of Ford's automotive business to the JV, a statement by the regulatory body said late Tuesday.
The proposed combination envisages the formation of a joint venture, Ardour Automotive Private Limited between the two companies.
In October, the two companies had entered into an agreement to create a 270 million U.S. dollars joint-venture with the Indian company, holding 51 percent stake and the rest by Ford after having announced a strategic alliance in 2017.
The 20.7 billion U.S. dollar Mahindra group with presence across diversified sectors and Ford had announced a strategic alliance in September 2017. This was followed by a declaration regarding powertrain sharing and connected car solutions in October 2018.
As per the pact, both companies will own their respective brands, while the JV, with a focus on electric vehicles, will be responsible for growing the Ford brand in India and exporting its products to Ford entities globally.
Ford will be transferring its India operations to the JV, including its personnel and assembly plants in Chennai, 347 km East of Bengaluru and Sanand, 543 km North of Mumbai.
However, the carmaker will retain the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.
