Mahindra-Ford joint venture called off due to these reasons

The closure was a result of changes in the business as well as global economic conditions. Both the companies will now assess their individual capital allocations.

By:Updated: Jan 01, 2021 12:08 PM

Not everyday do you hear of a joint venture in progress and then it getting called off. What started off nearly two years ago between Mahindra and Ford is something that has now been called off. Both the auto giants had earlier decided on collaborating for technology as well as products. Their joint statement now says, “The decision follows the passing of the Dec. 31 “longstop,” or expiration, date of a definitive agreement the organizations entered into in October 2019.” The closure was a result of changes in the business as well as global economic conditions. Both the companies will now assess their individual capital allocations. Ford India on its part will continue as an independent entity. At the same time, Ford as a whole is evaluating its business worldwide and looking to achieve profits with minimum inputs.

Ford India will likely push for electric as well as a new vehicle portfolio. The plan is to capitalise on existing strengths, and perhaps partner with someone of the same synergy to maximise gains and stay in the game. A few days ago, there were spy images of the new Ford Ranger in India. While Ford India has never had pickup trucks in its portfolio, this could be a good boost. Further, these Ranger kits were spotted at the Jayem Automotive factory premises. This might signal a new partnership between the two for performance off-road vehicles.

From its side, Mahindra says that this decision will not affect its product planning. Their core SUV DNA will be manifested in the coming days and the focus will also be on forwarding the electric vehicles business. There is the eKUV that was shown at the Auto Expo last year along with a price reveal. Unfortunately, the vehicle is yet to see the light of the day. We are not sure what the reason behind this could be. There are other new products like the 2021 Mahindra Scorpio as well as the XUV500. A refreshed TUV300 Plus too is expected soon.

 

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