Ford, Mahindra End Automotive Joint Venture Discussions

DEARBORN, MI — Ford Motor Company and Mahindra have ended an automotive joint venture, the companies announced Thursday. The decision follows the passing of the Dec. 31 expiration date of a definitive agreement that companies entered in October 2019.

According to the companies, the move was driven by fundamental changes in global economic and business conditions caused in part by the global pandemic.. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities, the companies said in a news release.

Ford said its independent operations in India will continue as is. The company said it is actively evaluating its businesses around the world, including in India, making choices and allocating capital.

When the original agreement was signed, it meant the companies would create a joint venture and develop a market that would include distributing Ford brand vehicles in India and Mahindra brand vehicles in high-growth emerging markets around the world.

Mahindra was set to own a 51 percent controlling stake and Ford owning a 49 percent stake, according to the agreement.

Ford was going to transfer its India operations to the joint venture, including its personnel and assembly plants in Chennai and Sanand. Ford would have retained the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.