In a statement released at the end of December 2020, Ford announced that it and Mahindra had mutually and amicably determined they will not complete a previously announced automotive joint venture between their respective companies.

The decision follows the passing of the Dec 31 expiration date of a definitive agreement the organisations 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 – over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.

Ford said its independent operations in India will continue, adding that it is actively evaluating its businesses around the world, including in India.

The company added that its plan calls for developing and delivering high-quality, high-value, connected vehicles – increasingly electric vehicles – and services that are affordable to an even broader range of customers and profitable for Ford.

The company said it is moving quickly to ‘turn around its automotive business . . .’ and ‘grow by capitalising on existing strengths, disrupting the conventional automotive business, and partnering with others to gain expertise and efficiency’.

Source: Motor Trader e-Magazine (February 2021)

23 February 2021