Ford-Mahindra Partnership In India Called Off

Ford Motor Company and Mahindra and Mahindra have called off their plans for a joint venture in India. On October 1, 2019, both brands had signed an agreement in Mumbai to create a joint venture that will develop, market, and distribute Ford vehicles in India along with Ford and Mahindra vehicles in high-growth emerging markets overseas. The JV was to see Mahindra having a 51 percent controlling stake and Ford owning a 49 percent stake. Ford was to transfer its India operations to the JV, including its personnel and assembly plants in Chennai and Sanand. Ford was to retain the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit, and Ford Smart Mobility.The JV was planned to be the next step in the strategic alliance forged between both brands back in September 2017 and aimed at exploiting new mobility opportunities, among other things. The joint venture was aimed at growing the Ford brand in India and exporting its products to Ford entities globally Importantly, there were to be planned synergies in the product portfolio, sourcing, and manufacturing, which would have achieved substantial cost savings.  However, in an official statement issued in the closing hours of the last day of 2020, first by Ford and then by Mahindra, both automakers have mutually and amicably decided that “they will not complete a previously announced automotive joint venture between their respective companies.”