Ford Motor Co. has bought its Indian partner’s stake in its local subsidiary, a company official told the Associated Press (AP) on Wednesday.
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Ford India’s vice president, Vinay Piparsania, reportedly said the parent company took full control of Ford India after buying a 15.88% stake from local partner Mahindra & Mahindra Ltd, and has also sold its 5.1% stake in Mahindra back to the Indian company.
Piparsania declined to give any financial details to the Associated Press.
According to AP, Mahindra said in a statement to the Bombay Stock Exchange that “both companies today operate in a much different business environment and the time has arrived for both the companies to manage their goals independently.”
But the news agency noted that the move comes after Mahindra and Renault announced plans in February to launch a joint venture to produce Renault’s low-cost Logan car in India.
The Associated Press said Ford set up its Indian subsidiary in Madras in 1995 as a 50-50 joint venture with Mahindra, but later raised its stake.
The factory near Madras employs 1,700 workers and has a capacity of 100,000 cars per year, AP said, adding that Ford India sold 27,000 cars in 2004 and expects sales to rise 10% in 2005.
