http://www.abrbuzz.co.za JANUARY / FEBRUARY 2018 7
to Mahindra that the American company is not over-enthusiastic
about long-term alliances. This seems counter-intuitive, given
recent developments at Renault/Nissan/Mitsubishi (see previous
article), and Toyota’s growing involvement with other Japanese
manufacturers. We believe that there is considerable potential for
Indian manufacturers to be drawn into fi rm global alliances, and
will be watching this story closely as it develops.Interestingly, Ford has also recently commenced EcoSport
production in Craiova, Romania, reportedly to keep pace with
demand from Europe’s rapidly-growing compact SUV market
sector. This was good news for Romania, where Ford has
invested more than € 1 billion since taking over the Craiova
facility in 2008, and now employs 3 900 people. In addition to
Continental European markets, EcoSports built in Romania will be
supplied to the United Kingdom, New Caledonia, Turkmenistan
and South Africa.Last month we reported on the introduction of Paccar’s in-
house branded 12-speed heavy duty automated transmission,
developed in collaboration with, and manufactured by,
transmission specialist Eaton. Subsequently, we have read about
a similar joint venture between Eaton and diesel engine specialist
manufacturer Cummins, resulting in the launch of the Endurant
12-speed automated transmission, which appears to share many
of the specifi cation features we listed when describing the Paccar-
branded unit. However, the integrated electronic communication
system, in this case, will pair the transmission with the Cummins
X15 Effi ciency Series engines rather than Paccar’s MX-11 and
MX-13 power units. This combination should appeal particularly
to operators with a preference for larger displacement engines in
linehaul operations.The report stated that Eaton and Cummins have established
a 50/50 joint venture entitled Eaton Cummins Automated
Transmission Technologies, which will produce medium and
heavy-duty automated transmissions, and market these products
to original equipment customers in North America. As we noted
in last month’s article, the American trucking industry has
increasingly shifted from its previous preference for outsourced
driveline aggregates from specialist suppliers, to vehicles
featuring “vertically integrated” in-house driveline specifi cations,
mainly through the infl uence of European-led groupings such as
Daimler and Volvo. These newly-announced moves by Eaton to
associate its products more closely with truckmaker Paccar and
engine manufacturer Cummins clearly present as a response to
this evolving situation.Alongside these continuing advances in conventional vehicle
technologies, the truck industry is also moving resolutely into the
world of electric traction. Following extensive real-world trials of
the basic design in Portugal and Germany since 2014, Daimler
Trucks subsidiary Mitsubishi Fuso Truck and Bus Corporationtechnology targets include a more than 600 km operating range
capability by 2022, a 30% decrease in battery cost from 2016
to 2022, 15 minutes charging time for 230 km range by 2022,
optimised battery fl at packaging for less interior space intrusion,
and adoption of Mitsubishi’s new plug-in hybrid technology
across all Alliance nameplates by 2022.
The Renault/Nissan alliance has presented as a highly successful
model for co-operation between previously independent
manufacturers, as it has assisted both constituents through tricky
periods of less-than-satisfactory profi tability by the realisation
of economies of scale and intelligent rationalisation. Despite
some initial observer misgivings about cultural diff erences,
both manufacturers have expanded their global footprints and
market coverage, particularly in the area of aff ordable entry-level
products. The extent of the alliance’s successful co-operation
with Daimler and Dong Feng has also been an eye-opener. The
arrangement between Renault-Nissan and Daimler includes a
3,1% cross-shareholding, but there have not been indications, up
to now, that any further corporate consolidation involving Daimler
is on the agenda. However, with the Renault/Nissan/Mitsubishi
Alliance now a serious contender for global automotive market
leadership, nothing can be ruled out.
Ford and Mahindra
If there is one certainty in the global motor industry, it is that
nothing ever stays the same. Take the Ford Motor Company
for instance. From inception, the company was identifi ed by its
famous “Blue Oval” emblem. Even during the lengthy period
when some Ford products were sold variously as Taunus,
Thames, Fordson, or Mercury, there was never any doubt about
their parentage, and the situation became even clearer when an
unambiguous single-brand strategy was adopted in the 1970’s.
In 1979, however, Ford bought a stake in Japanese manufacturer
Toyo Kogyo, and much confusion resulted when only “badge
engineering” separated some almost identical Ford and Mazda
equivalent models. The shareholding in Mazda peaked at 33,4%
in 1996, but, from 2008 it was progressively scaled down before
being completely sold off in September, 2015.There was also the
more recent period when Volvo, Land Rover, Jaguar and Aston
Martin joined the Ford Premier Auto Group family, and Jaguars
shared a common platform with Ford Mondeos. This all unwound,
however, from 2007, when Alan Mulally moved in from Boeing to
revitalise the company with his “One Ford” strategy, and this led
to the sale of the four off shore PAG brands, leaving Lincoln as the
only alternative nameplate.
In September, we read that Ford had entered a three-year
strategic alliance with Indian manufacturer Mahindra and
Mahindra Limited. Somewhat surprisingly, the report also
stated that the two companies had, in 2005, ended a previous
partnership which had commenced in the 1990’s, and included
cross-shareholdings. The article suggested that Ford’s new
chief executive, Jim Hackett, who took over in May 2017, had
conducted an extensive audit of the company’s strategies, and
was embarking on a new direction. This revived relationship
with Mahindra is expected to yield access to lower cost electric
vehicle designs and local Indian component suppliers for Ford,
while Mahindra may gain possible access to Ford’s global
distribution network, and additional production capacity in Ford’s
Indian operations.
Despite producing important and successful export products
such as the Figo, Ikon and EcoSport in India, Ford reportedly
enjoys less than 3% share in the local market, which is reported as
being one of the fastest growing in the world. The partnership with
Mahindra could be pivotal in improving Ford’s sales performance
in India, but we were somewhat surprised by its apparently short-
term nature. Ford currently conducts manufacturing operations
in Chennai, Tamil Nadu and Sanand, Gugarat, and is planning to
establish a global engineering centre in Chennai. These all suggest
a high level of commitment to a continuing presence on the Sub-
Continent. However, Ford’s recent uncoupling of its previously
close relationship with Mazda may present some warning signals
“Ford has added Romanian production to the EcoSport programme”Truck Industry Developments