Ford and M&M signed an agreement in October 2019 to form a joint venture.
US major auto company Ford Motor Company and India’s Mahindra & Mahindra said on Friday that the two companies have decided to cancel the already announced automotive joint venture. Companies say that this decision has been taken in view of the fundamental changes in the global economy and business conditions due to the coronavirus epidemic. On the other hand, Ford says that it will continue its independent operations in India. At the same time, Mahindra says that this decision will not affect the company’s product plan.
Both companies have decided that they will not implement the already announced automotive joint venture between their respective companies. Ford Motor Company said in a statement that the two companies had signed a definitive agreement in this regard in October 2019, the period of which ended on 31 December 2020. The company said that this decision was taken due to fundamental changes in global economic and business conditions due to the epidemic during the last 15 months. In such a situation, Ford and Mahindra rescheduled their capital allocation priorities. Ford continued, “Independent operations in India will continue as before.”
Ford will bring the premium connected car!
Ford Motor Company says that it is evaluating its business worldwide, this includes India. The company plans to achieve an adjusted EBITDA margin of 8 per cent and ensure strong cash flow. Ford is working on bringing good quality and premium connected vehicles. In addition, it will work towards keeping electric vehicles and services affordable to every customer and to earn profits.
In the regulatory filing, Mahindra & Mahindra says that this decision will not have any effect on the company’s product plan. He is keeping himself in a strong position on the SUV segment and product platforms. Its focus is also on improving economic performance. Apart from this, the company is also making efforts in the role of leadership in electric SUV.
M&M holds ownership in a joint venture
October 2019 Under the agreement announced between the two companies, Mahindra and Mahindra would buy a majority stake in the Ford Motor Company wholly-owned company and take over the American company’s automotive business in India. The new joint venture of the two companies was to develop and distribute markets in India for Ford brand vehicles. The growth of both Ford and Mahindra vehicles is high in India.