COVID-19 impact: Ford Mahindra joint venture scrapped Updated Jan 01, 2021 | 10:55 IST
The new venture was also envisaged to acquire the automotive business of Ford India Pvt Ltd (FIPL), a wholly-owned subsidiary of FMC, that has been engaged in the automotive business in India since 1995. COVID-19 impact: Ford Mahindra joint venture scrapped | Representative image
US auto major Ford Motor Co on Friday said it and India s Mahindra & Mahindra have decided to scrap their previously announced automotive joint venture and it will continue its independent operations in India as it is. The two companies determined that they will not complete a previously announced automotive joint venture between their respective companies. The decision follows the passing of the December 31, 2020 longstop or expiration date of a definitive agreement the organisations entered into in October 2019, Ford Motor Company said in a statement.
Mahindra, Ford call off plan for auto JV
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‘Ford’s operations to continue as is’
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‘Ford’s operations to continue as is’
Mahindra & Mahindra Ltd (M&M) and Ford Motor Company (FMC) have ‘mutually and amicably’ decided not to complete a previously-announced automotive joint venture between their companies.
While Ford said it would continue its independent operations in India as is, M&M said the decision would not have any impact on the firm’s product plan.
“The action followed the passing of the December 31, ‘longstop’, or expiration date of a definitive agreement the organisations entered into in October 2019,” M&M and FMC said in separate statements.
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Ford, Mahindra To Scrap Proposed Automotive Joint Venture
While Ford said it will continue its independent operations in India as it is, M&M said the decision will not have any impact on the company s product plan.
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US auto major Ford Motor Co and India s Mahindra & Mahindra (M&M) on Friday said they have decided to scrap a previously announced automotive joint venture citing fundamental changes in global economic and business conditions caused, in part, by the coronavirus pandemic.
While Ford said it will continue its independent operations in India as it is, M&M said the decision will not have any impact on the company s product plan.