Full statement from Mahindra on end of discussions for joint venture with Ford

Mahindra states it is accelerating efforts to have a leadership position in electric SUVs.The joint venture with Ford was aimed at cutting development and production costs for vehicles in emerging markets.
By : HT Auto Desk
| Updated on: 01 Jan 2021, 10:31 AM
File photo used for representational purpose. (MINT_PRINT)
File photo used for representational purpose. (MINT_PRINT)
File photo used for representational purpose. (MINT_PRINT)
File photo used for representational purpose.

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.

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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.

First Published Date: 01 Jan 2021, 10:31 AM IST
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