Ford and Indian auto maker Mahindra name off three way partnership
Ford Motor Co. and Mahindra and Mahindra Ltd. from India on Thursday, a little more than a year after their announcement, closed their joint venture to manufacture automobiles, citing economic challenges caused by the pandemic.
In a joint statement, the companies said the company’s liquidation was “due to profound changes in global economic and business conditions, partly caused by the global pandemic over the past 15 months”.
“These changes influenced Ford and Mahindra’s separate decisions to reassess their respective priorities for capital allocation,” the companies said.
The two automakers announced the joint venture in October 2019. Ford F, -0.79%, would have transferred most of its auto operations in India to Mahindra 500520, -0.01%.,
A cost-saving move to break into a growing market in which Ford has largely made no progress. The joint venture would have focused on the manufacture of vehicles for emerging markets.
Ford said Thursday that its operations in India “will stay as they are,” adding that it is “actively evaluating” its operations around the world, including India, to increase margins and generate consistently strong cash flow .
Ford stock lost 5.5% in 2020 compared to the S&P 500’s SPX, despite a 30% gain over the past three months, up + 0.64% and 16% over the year.