First breakup of New Year: End of the road for M&M, Ford JV

New Delhi, January 1

US-based auto major Ford Motor Co and India’s Mahindra & Mahindra (M&M) on Friday said they have decided to scrap a previously announced automotive joint venture, citing changes in global economic and business conditions partly due to the coronavirus pandemic.

While Ford said it will continue its independent operations in India as it is, M&M said the decision will not have any impact on its product plan but will enable it to focus on the core business of SUVs and also develop electric vehicles.

M&M to focus on SUVs, electric line-up

• While Ford said it will continue its independent operations in India as it is, Mahindra and Mahindra (M&M) said the decision will not have any impact on its product plan but will enable it to focus on the core business of SUVs and also develop electric vehicles.

The two companies determined they will not complete a previously announced automotive joint venture between their respective companies. The decision follows the passing of the December 31, 2020, “longstop”, or expiration, date of a definitive agreement the organisations entered into in October 2019, Ford Motor Company said.

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 re-assess their respective capital allocation priorities, it added.

Ford further said its independent operations in India will continue as it is.

Addressing a video conference, M&M MD and CEO Pawan Goenka said both the companies were clear that given the current situation, this is “the most prudent decision for them to make and move on” and focus on the core business. — PTI