The agreement was supposed to move some of Ford’s local operations under the control of the new joint venture, including its personnel and assembly plants in Chennai and Sanand. The engine plant operations in Sanand, the Global Business Services unit, Ford Credit, and Ford Smart Mobility would have remained under the control of the Americans.
The joint venture, valued at $275 million, was also supposed to be in charge of making three new utility vehicles, starting with a midsize one based on a Mahindra platform, and later with producing electric vehicles as well.
Now, after a full year of fighting the effects of a pandemic that has spread far beyond the medical aspects of our lives, both Ford and Mahindra announced the joint venture would not happen, as the December 31 deadline passed without a definitive agreement being reached.
“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,” Ford said in a statement.
“The outcome was driven by fundamental changes in global economic and business conditions – caused, in part, by the global pandemic – over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.”
The Americans say the current operations in India will continue as they did until now.