The joint venture partners Mahindra & Mahindra and Ford Motor Co. have ‘mutually and amicably’ ended their venture. This surely comes as a surprise but amidst various companies making changes to their set of priorities to make up for the losses incurred in the ongoing pandemic, Mahindra & Mahindra’s decision was a result of the same.
An outline of the future course of actions
However, as per what Ford has claimed, it will continue to work independently in India.
The agreements signed by these two entities state that even though the joint venture has ended, the joint venture projects will still be entertained. This implies that Mahindra & Mahindra will manufacture and provide products to Ford.
Another noticeable point in the agreement stated that the development of the SUVs had to take place by these entities together as well as the connected technology and engine was to be shared.
Anish Shah, soon to become the managing director of Mahindra & Mahindra, said:
“We are going back to our core.” “We are going to look ahead at how we are going to accelerate our investment in electric and really start moving to the new age. We clearly hold the ambition to be a global brand and there again the electric journey is an important one,” Shah added.
M&M was entitled to 51% stake at Ford and the remaining 49% belonged to Ford. The endeavor was also likely to obtain FIPL’s (Ford India Pvt Ltd) automotive business.
Mahindra was apparently not convinced of the joint-venture to be able to fetch higher returns in the post-pandemic phase. Thereby, concluding to call off the joint venture deed.