Mahindra and Ford call off JV
The Ford Motor Company and Mahindra and Mahindra has decided to not go ahead with the planned joint venture between the two firms for the Indian and other developing markets. Mahindra and Ford had entered into agreements in October 2019, but have now decided to part ways mutually following the December 31 longstop date.
This decision was brought about by the major changes in the economics of the global car market in 2020 following the COVID19 pandemic. This led both, Ford and Mahindra, to reassess the deal and come to separate decisions on its viability. Both firms have decided to focus their resources differently.
Ford India will continue to operate as an independent entity in the Indian market. The American manufacturer is focusing on turning around its India business and grow by capitalizing on existing strengths, disrupting the conventional automotive business, and partnering with others to gain expertise and efficiency, says the firm.
The joint venture would have allowed Mahindra access to a number of global markets through Ford while the American giant was to benefit from the low cost of development and a strong ally in the Indian market. Upto nine shared products had been planned, starting with a C-SUV developed by Mahindra to then be used by Ford in developing markets. Although developed together, the products were touted to closely follow each brand's values and target separate audiences.