Ford insisted that it will continue to maintain its solo operations in India. The statement by Ford said that the decision was driven by fundamental changes in global economic and business conditions. Issued from Ford’s headquarters at Dearborn in Michigan, the statement said the companies have “mutually and amicably” arrived at the decision.
The Ford statement said, “Ford Motor Company and Mahindra & Mahindra have 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 December 31 “longstop,” or expiration, date of a definitive agreement the organizations entered into in October 2019.”
Mahindra was to acquire Ford’s business in India, and the American auto company would have held 49% in the new joint venture. The companies were to produce new platforms, cars and SUVs — including electric vehicles — together.
In a late-night message to the Bombay Stock Exchange (early January 1), Mahindra and Mahindra said, “The Company and Ford have mutually and amicably determined that they will not further pursue their Joint Venture plan.”
Mahindra also said that the outcome was driven by the fundamental changes in global economic and business conditions caused, in part, by the global pandemic since the agreement was first announced. These changes influenced separate decisions by the Company and Ford to reassess their respective capital allocation priorities.