News Link: Mahindra And Ford For A Joint Venture – By MK (Editor)
Mahindra states it is speeding up 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.
Mahindra and Mahindra Ltd and Ford Motor Company have called off prospects of a joint venture declared earlier. Blaming that challenges caused by Covid-19-related factors. Changes over the last 15 months clouded prospects of the two automakers joining forces in a bid. Which aims to cut costs for developing and producing vehicles for emerging markets.
Mahindra on Friday issued a statement at 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 one thing. Which is, they will not complete a previously announced automotive joint venture between their companies. The action followed the passing of the December 31, “longstop”, or expiration, date of a definitive agreement the organizations entered into in October 2019.
According to the companies, the outcome is a result of fundamental changes in global economic and business conditions. Which 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.
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 increasing the speed of its efforts to get leadership in electric S U V s.
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News Link: Mahindra And Ford For A Joint Venture – By MK (Editor)
