Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

Mahindra Goes For A Divorce With Its JV Partner Ford Within A Year Of Alliance

Mahindra said that this decision will not have any impact on its product plan.

Photo Credit :

1609500915_srXiyn_Mahindra_Ford.jpg

Mahindra Ford

Anand Mahindra, Chairman of Mahindra Group once famously quipped ‘Our Company is the Marilyn Monroe of joint ventures’. His claims got reinforced as his company broke off its ties with another company after calling off its JV with Renault, Navistar, and many others. This is analogous to the aforementioned renowned Hollywood actress who had multiple failed relationships with other celebrities. 

On 1st January, 2021, US auto major Ford Motor Co 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 agree.
 “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, both the companies said in an official statement.

"The company is actively evaluating its businesses around the world, including in India, making choices and allocating capital in ways that advance Ford's plan to achieve an 8 per cent company adjusted EBIT margin and generate consistently strong adjusted free cash flow," Ford Motor Co said in a statement.

Mahindra, in its official release claimed that this decision will not have any impact on its product plan. It is well positioned in its core true SUV DNA and product platforms with a strong focus on financial performance. In addition, the company maintained that it is accelerating its efforts to establish leadership in electric SUVs.


 
 


Tags assigned to this article:
mahindra and mahindra ford motor