Ford makes dramatic pivot in India as part of cost-cutting strategy

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
Page 1 of 2 12 LastLast
Results 1 to 15 of 17

Thread: Ford makes dramatic pivot in India as part of cost-cutting strategy

  1. #1
    6.2 Liter LS9 Supercharged V8
    Join Date
    Apr 2005
    Posts
    8,591
    Thanks
    957
    Thanked 1,442 Times in 830 Posts

    Ford makes dramatic pivot in India as part of cost-cutting strategy

    Looks like it was a bit premature then Ford leave India and decide to go with plan B, doing a joint-venture with Mahindra. https://www.freep.com/story/money/ca...ia/2439430001/

    In a shift that reshapes Ford Motor Co’s relationship with India, one of the largest and fastest-growing car markets in the world, the automaker has decided to "transfer most of its assets in India to a joint venture with Mahindra & Mahindra Ltd.," sources with knowledge of the deal told Bloomberg.

    Ford confirmed to the Free Press it is "engaged with Mahindra."

    Mahindra, which is India’s largest utility vehicle maker and has a tech center in Auburn Hills, "will own 51% of the new entity," Bloomberg reported, noting the plan is still confidential and fluid.

    Analysts praised the move Wednesday, pointing out that the Dearborn company has sunk $2 billion into India with little return — a tiny market share hovering around 3%.

    "This move gets Ford’s underperforming assets in India off its books, which should help clean up its balance sheet a bit," said John McElroy, veteran industry analyst and "Autoline After Hours" host.

    "Kudos to Ford for not throwing in the towel altogether and abandoning the market. But this is another example of how big automakers struggle to design low-cost cars for developing markets."

    Ford spokeswoman Lori Arpin said in a prepared statement, “Ford remains committed to growing its customer base and product portfolio in the world’s fourth-largest automobile market.”

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    29,272
    Thanks
    4,593
    Thanked 6,590 Times in 3,196 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Seems like they are always years behind mother Barrah in making the right calls..

  4. #3
    emh
    emh is offline
    7.0 Liter LS7 V8 emh's Avatar
    Join Date
    Mar 2007
    Posts
    4,508
    Thanks
    324
    Thanked 1,016 Times in 540 Posts

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Quote Originally Posted by Stéphane Dumas View Post
    Ford confirmed to the Free Press it is "engaged with Mahindra."
    Wonder when the wedding is.
    "The irony of the Information Age is that it has given new respectability to uninformed opinion" -- John Lawton

  5. The Following User Says Thank You to emh For This Useful Post:

    mbukukanyau (09-26-2019)

  6. Remove Advertisements
    GM Inside News
    Advertisements
     

  7. #4
    Chevrolet VOLT Premium Member
    Join Date
    Feb 2010
    Location
    The land of the hethan
    Posts
    10,147
    Thanks
    1,466
    Thanked 3,418 Times in 2,240 Posts
    My Ride
    The coffin on wheels
    Quote Originally Posted by mbukukanyau View Post
    Seems like they are always years behind mother Barrah in making the right calls..
    We’ll see, India was always difficult, I wonder if South America is next- JV with VW....shades of autolinia?

    Europe is the key though get that right and ROW pops right into place. GM could never make Europe work but I bet Ford does.

  8. #5
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    29,272
    Thanks
    4,593
    Thanked 6,590 Times in 3,196 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Quote Originally Posted by jpd80 View Post
    We’ll see, India was always difficult, I wonder if South America is next- JV with VW....shades of autolinia?

    Europe is the key though get that right and ROW pops right into place. GM could never make Europe work but I bet Ford does.
    America is the key, Europe is a disaster of prejudice

  9. #6
    Chevrolet VOLT Premium Member
    Join Date
    Feb 2010
    Location
    The land of the hethan
    Posts
    10,147
    Thanks
    1,466
    Thanked 3,418 Times in 2,240 Posts
    My Ride
    The coffin on wheels
    Quote Originally Posted by mbukukanyau View Post
    Quote Originally Posted by jpd80 View Post
    We’ll see, India was always difficult, I wonder if South America is next- JV with VW....shades of autolinia?

    Europe is the key though get that right and ROW pops right into place. GM could never make Europe work but I bet Ford does.
    America is the key, Europe is a disaster of prejudice
    It’s good that GM exited Europe, they were clueless about the market, Ford + VW is gonna be huge for both.

  10. The Following User Says Thank You to jpd80 For This Useful Post:

    richmond2000 (09-26-2019)

  11. #7
    6.2 Liter LS9 Supercharged V8 richmond2000's Avatar
    Join Date
    Nov 2009
    Location
    Winterpeg
    Posts
    8,555
    Thanks
    9,433
    Thanked 1,612 Times in 1,156 Posts
    My Ride
    2014 RAM 1500 HEMI

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Quote Originally Posted by mbukukanyau View Post
    America is the key, Europe is a disaster of prejudice
    I disagree AMERICAN cars have struggled EVERYWHERE not AMERICA and now with America the ONLY country NOT trying to reduce carbon emissions NEW American products are LESS sellable globally then ever

  12. #8
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    29,272
    Thanks
    4,593
    Thanked 6,590 Times in 3,196 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Quote Originally Posted by richmond2000 View Post
    I disagree AMERICAN cars have struggled EVERYWHERE not AMERICA and now with America the ONLY country NOT trying to reduce carbon emissions NEW American products are LESS sellable globally then ever
    Europeans generally drive little dinky cars, and with their growing unelected regime over there, Europe is going to get much much poorer once the British leave.

    It’s a shrinking pie.

  13. The Following 2 Users Say Thank You to mbukukanyau For This Useful Post:

    Evo69 (10-04-2019),Neanderthal (10-09-2019)

  14. #9
    6.0 Liter L76 V8 BORG's Avatar
    Join Date
    Aug 2005
    Location
    Rochester Hills, MI, USA
    Posts
    2,000
    Thanks
    93
    Thanked 636 Times in 298 Posts
    My Ride
    2019 Lincoln Nautilus

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    There's a huge difference between GM and Ford. Ford has their name on their products, GM doesn't. Ford can't sell off, but they can partner which is one way of finding the right people to run their regional operations instead of just bowing out and shrinking. I'm not sure where Detroit's future is, but Ford isn't going this alone and they have some of the biggest partners in the industry.

    Detroit has had a hard time thriving globally because they haven't stayed as competitive as others. Ford in particular, especially under Allan and Mark, really failed to adapt to their regional needs. They just wanted to push their OneFord administration from the Dearborn office and didn't listen to or understand their regions. This is a seemingly chronic problem for many companies. It's one reason VW has failed so hard in the US and Ford so hard in China. Which makes them a great couple.

    And it's worth pointing out that America also makes Tesla, the most influential carmaker since Ford and the first American carmaker to leave Germany and Japan scrambling for a response. We managed to achieve that despite our politics, never under-estimate American innovation. And more importantly, ignore anybody who thinks they can summarize the American automotive industry to fit their world view.
    Last edited by BORG; 10-08-2019 at 06:46 PM.

  15. #10
    Chevrolet VOLT Premium Member
    Join Date
    Feb 2010
    Location
    The land of the hethan
    Posts
    10,147
    Thanks
    1,466
    Thanked 3,418 Times in 2,240 Posts
    My Ride
    The coffin on wheels
    Quote Originally Posted by BORG View Post
    There's a huge difference between GM and Ford. Ford has their name on their products, GM doesn't. Ford can't sell off, but they can partner which is one way of finding the right people to run their regional operations instead of just bowing out and shrinking. I'm not sure where Detroit's future is, but Ford isn't going this alone and they have some of the biggest partners in the industry.

    Detroit has had a hard time thriving globally because they haven't stayed as competitive as others. Ford in particular, especially under Allan and Mark, really failed to adapt to their regional needs. They just wanted to push their OneFord administration from the Dearborn office and didn't listen to or understand their regions. This is a seemingly chronic problem for many companies. It's one reason VW has failed so hard in the US and Ford so hard in China. Which makes them a great couple.

    And it's worth pointing out that America also makes Tesla, the most influential carmaker since Ford and the first American carmaker to leave Germany and Japan scrambling for a response. We managed to achieve that despite our politics, never under-estimate American innovation. And more importantly, ignore anybody who thinks they can summarize the American automotive industry to fit their world view.
    So I’m wondering if VW has a big role to fill in regards to Ford’s RHD needs in UK, australasia and some parts of Asia, no doubt Mahindra dovetails into that plan as well...

    Maybe that allows Ford to thrive in Europe, ROW/China where things have been tough
    Last edited by jpd80; 10-08-2019 at 07:09 PM.

  16. #11
    6.0 Liter L76 V8 BORG's Avatar
    Join Date
    Aug 2005
    Location
    Rochester Hills, MI, USA
    Posts
    2,000
    Thanks
    93
    Thanked 636 Times in 298 Posts
    My Ride
    2019 Lincoln Nautilus

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Right now I don't really see Ford and VW cooperating to fill their global weak spots, it appears mostly about improving efficiency in already strong markets. I know I implied there was some simpatico there because they are weak in certain markets where the other is strong, but right now there doesn't appear to be any broad cooperation. It also appears VW will not be taking advantage of Ford's next-gen pickup, right now it seems mostly to be about supporting each other in the EU. Ford's electrification efforts seem to be happening regionally with very distinctive strategies, although there is some product overlap here and there. But NA is getting its own architecture, Europe is getting VW based EVs, and Chinese partners are developing Ford's BEVs there. It's strange, but Ford is moving to a very regionalized approach to all their products once again which seems to be producing far more results in a shorter period of time. But we are returning to a point where Ford looks completely different from continent to continent, the walls are going back up sadly.
    Last edited by BORG; 10-09-2019 at 02:30 PM.

  17. #12
    3.6 Liter SIDI V6 rmc523's Avatar
    Join Date
    May 2009
    Location
    Fort Lauderdale, FL
    Posts
    1,179
    Thanks
    61
    Thanked 891 Times in 438 Posts
    My Ride
    '09 Ford Flex; '18 Mustang GT

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Quote Originally Posted by BORG View Post
    Right now I don't really see Ford and VW cooperating to fill their global weak spots, it appears mostly about improving efficiency in already strong markets. I know I implied there was some simpatico there because they are weak in certain markets where the other is strong, but right now there doesn't appear to be any broad cooperation. It also appears VW will not be taking advantage of Ford's next-gen pickup, right now it seems mostly to be about supporting each other in the EU. Ford's electrification efforts seem to be happening regionally with very distinctive strategies, although there is some product overlap here and there. But NA is getting its own architecture, Europe is getting VW based EVs, and Chinese partners are developing Ford's BEVs there. It's strange, but Ford is moving to a very regionalized approach to all their products once again which seems to be producing far more results in a shorter period of time. But we are returning to a point where Ford looks completely different from continent to continent, the walls are going back up sadly.
    In your last post you talk about about the One Ford one size fits all approach not working, and now you don't like the regionalized approach?

  18. #13
    6.0 Liter L76 V8 BORG's Avatar
    Join Date
    Aug 2005
    Location
    Rochester Hills, MI, USA
    Posts
    2,000
    Thanks
    93
    Thanked 636 Times in 298 Posts
    My Ride
    2019 Lincoln Nautilus

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    That wasn't a statement of disapproval, just that we are going to miss the things we can't have like we did before. That's just a fact of life, the business case is another matter which I tend to agree with. I was long skeptical of the OneFord policy because Ford has always struggled when it tried to make their volume products global. It was great for cost cutting, but it was incredibly inflexible and unresponsive.

    Their new approach is mostly about sharing "architectures" so that each region can develop their own products. We still have the new Escape/Kuga largely shared, but this time they are better differentiated. And Ford is creating it's own North American version of the C-Segment utility to better respond to the unique character of the US market just as Europe created the Puma for theirs. And then we'll have some low volume premium products exported like Mustang/Edge/Explorer. I think we'll get to a point where the products become separate evolutionary branches, even if they share a nameplate.
    Last edited by BORG; 10-09-2019 at 04:16 PM.

  19. #14
    3.6 Liter SIDI V6 rmc523's Avatar
    Join Date
    May 2009
    Location
    Fort Lauderdale, FL
    Posts
    1,179
    Thanks
    61
    Thanked 891 Times in 438 Posts
    My Ride
    '09 Ford Flex; '18 Mustang GT

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    I always thought the plan was to have a few core global products, and then use those platforms as starting points for more niche regional vehicles.

  20. The Following User Says Thank You to rmc523 For This Useful Post:

    Stéphane Dumas (10-10-2019)

  21. #15
    Chevrolet VOLT Premium Member
    Join Date
    Feb 2010
    Location
    The land of the hethan
    Posts
    10,147
    Thanks
    1,466
    Thanked 3,418 Times in 2,240 Posts
    My Ride
    The coffin on wheels

    Re: Ford makes dramatic pivot in India as part of cost-cutting strategy

    Quote Originally Posted by rmc523 View Post
    I always thought the plan was to have a few core global products, and then use those platforms as starting points for more niche regional vehicles.
    In reality, One Ford suited just the USA where it significantly reduced costs,
    everywhere else One Ford= last gen EU products warmed over to suit FNA
    and as a result Europe, China, Sth America and ROW all fell in a heap.

  22. Remove Advertisements
    GM Inside News
    Advertisements
     

Page 1 of 2 12 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBadvanced CMPS v4.1.2