Full statement from Mahindra on end of discussions for joint venture with Ford
Mahindra and Mahindra Ltd and Ford Motor Company have called off prospects of a joint venture, blaming challenges caused by Covid-19-related factors. Changes over the last 15 months clouded prospects of the two automakers joining forces in a bid to cut costs for developing and producing vehicles for emerging markets.
Mahindra on Friday issued a statement on the end of discussions and the calling-off of the possible JV. Here's the full statement:
Mahindra & Mahindra, a part of the USD 19.4 billion Mahindra Group 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.
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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.