Mahindra & Mahindra and Ford Motor Company have mutually, amicably determined they will not complete a previously announced automotive joint venture between their companies. The action followed passing of the December 31, “longstop”, or expiration, date of a definitive agreement the organizations entered into in October 2019.
According to the companies, the outcome was driven by fundamental changes in global economic and business conditions – caused, in part, by the global pandemic – since the agreement was first announced. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.
Mahindra said that this decision will not have any impact on its product plan. It is well-positioned in its core true SUV DNA and product platforms with a strong focus on financial performance. In addition, Mahindra is accelerating its efforts to establish leadership in electric SUVs.
Earlier both companies had announced a definitive agreement to co-develop a midsize sports utility vehicle (SUV). Under this new agreement, Mahindra and Ford would have worked together to introduce a benchmark product for India and emerging markets.
The strategic alliance between the two companies was aimed at leveraging the benefits of both companies – Ford’s global reach and expertise and Mahindra’s scale and successful operating model in India.
