Ford and India-based OEM Mahindra & Mahindra have determined they will not complete a previously announced automotive joint venture between their respective companies.
The decision follows the passing of the Dec. 31, 2020 “longstop,” or expiration, date of a definitive agreement the organizations entered into in October 2019, according to Ford. Ford said its independent operations in India will continue as is. The company is actively evaluating its businesses around the world, including in India.
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, according to the companies. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.
Earlier talks between the two automakers included the creation of new powertrain technology and connected car solutions in India, as well as the development of two new SUVs and an electric vehicle in India and emerging markets.