Automobile manufacturers Mahindra & Mahindra and Ford Motor Company have ‘mutually, amicably determined’ they will not complete a previously announced automotive joint venture between their companies.
The action follows the passing of the expiration date of a definitive agreement the organisations entered into in October 2019.
Accordingly, the outcome was driven by fundamental changes in global economic and business conditions — 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,” M&M said in a statement.
On its part, Mahindra said that this decision will not have any impact on its product plan.
“It (Mahindra) is well positioned in its core true SUV DNA and product platforms with a strong focus on financial performance,” the statement said.
“In addition, Mahindra is accelerating its efforts to establish leadership in electric SUVs.”