In a classic 4:15pm release on New Year’s eve designed to bury bad news, Ford Motor Company has just announced that it is ending a proposed joint-venture with Mahindra that would have been responsible for expanding the Ford brand in India and exporting Mahindra products to Ford entities globally. Ford would have continued to own the brand (a valuable asset that could be borrowed against as it did during the Great Recession), and its branded vehicles would be distributed through the current Ford India dealer network. Mahindra would have continued to own the Mahindra brand and operate its own independent dealer network in India. (See AutoInformed.com on Ford Restructuring – Mahindra Joint Venture Announced and Mahindra, Ford to Study Links in India, Emerging Markets)
The failure “was driven by fundamental changes in global economic and business conditions – caused, in part, by the global pandemic – over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities,” Ford said. Ford in AI’s opinion is on track to lose $400 billion this quarter. Ford and Mahindra announced an alliance in September 2017, and it was expected to be operational by mid-2020. (Things move glacially at Ford see Ford Motor Changes CEO from Jim Hackett to Jim Farley and Weak Ford 2018 Financial Results Prove Need for Shakeup) The joint venture would have been operationally managed by Mahindra, and its governance will be composed of representatives of Mahindra and Ford. Continue reading
Aston Martin Returns to Formula 1 in 2021?
A dubious proposition then and now?
For the first time in six decades, Aston Martin will make its racing debut at the start of the 2021 Formula 1 season in Melbourne.
The Aston Martin Formula One Team will reveal in February its 2021 livery – working on sponsors – and driver line-up with four-time World Champion Sebastian Vettel, from Ferrari and infrequent Grand Prix podium finisher Lance Stroll from Williams and Racing Point – at the home of Aston Martin in Gaydon.
The Aston Martin name had been established on the hill-climb courses of Great Britain during beginning of the last century. Lionel Martin had success at the wheel of his own car. However, Grand Prix racing around Europe promised the wider fame and sales he wanted for his company.
Whether that holds true today given the tatters that F1 was in last year remains to be proven. The 2020 F1 season is one I won’t miss. (I guess the nicest way to characterize the last race is “strategic.” This is a polite way of saying there wasn’t any racing going on. Ferrari with six straight losing seasons. Mercedes dominating qualifying and the races as it had for years on years. YAWN. Changing 2021 down-force doesn’t appear to be anything but a meaningless tweak. I know: don’t write your lede on the way to Australia in 2021. Still it reminds me of the McClaren mid-1980s domination years that badly damaged F1 with its lack of racing. ) Continue reading →