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Ford and Mahindra to Build EV, SUVs for Emerging Markets

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Ford Motor Company (F - Free Report) has signed five new memoranda of understanding (MoU) with Mahindra & Mahindra Limited, an Indian automotive manufacturing company, to develop a new electric vehicle (EV) and sports utility vehicles (SUVs). Both the companies will strengthen their strategic coalition and develop products for emerging markets, including India.

Announced in September 2017, the recently signed alliance will jointly develop a midsize SUV on Mahindra’s platform. However, the new SUV will be sold by both companies under separate brands.

Additionally, the alliance will evaluate on co-developing an electric vehicle and a compact SUV by utilizing shared powertrains. In order to widen Ford’s vehicle offering, it might use Mahindra’s powertrains. The collaboration also has plans to jointly develop a suite of connected car solutions, which is in sync with Ford’s commitment to offering safer options for its consumers, globally.

Ford Motor Company Price and Consensus

 

 

Beside electrification and utility vehicles as key spotlight areas, both the companies will work on the needs of consumers while leveraging on the benefits of Ford’s skill and global reach and Mahindra’s presence in India. With these new initiatives, the alliance aims to make synergies and strengthen efficiencies.

Moreover, teams from Ford and Mahindra will look for avenues of strategic cooperation to deal with future mobility needs while supporting Mahindra’s reach in emerging markets and Ford’s manufacturing and distribution networks.

Price Performance

In the last three months, shares of Ford underperformed the industry it belongs to. During the period, its stock fell 12.4% in comparison with the industry’s decline of 7.1%.

 

 

Zacks Rank & Key Picks

Ford sports a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are General Motors Company (GM - Free Report) , Honda Motor Co. Ltd. (HMC - Free Report) and Spartan Motors, Inc. . General Motors and Honda sport a Zacks Rank #1 (Strong Buy), while PACCAR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

General Motors has expected long-term growth rate of 8.4%. Over a year, shares of the company declined 9.5%.

Honda has expected long-term growth rate of 5.2%. Shares of the company gained 13.4% in the last six months.

Spartan Motors has expected long-term growth rate of 15%. In the last six months, shares of the company gained 59.7%.

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