Automakers Ford and Mahindra & Mahindra have called off the joint auto venture and separately issued statements on Friday saying the decision had to be taken because of the “global economic and business conditions caused, in part, by the global panderming.
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.”
The statement also added that `outcome was driven by the “fundamental changes in global economic and business conditions caused, in part, by the global pandemic.”
“These changes influenced separate decisions by the Company and Ford to reassess their respective capital allocation priorities,” M&M’s statement added.
A statement for Ford, issued from headquarters at Dearborn in Michigan, US, said that decision was driven by fundamental changes in economic and business conditions.
“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 in October 2019,” the Ford statement said.
