Ford Motor Company and Mahindra & Mahindra have dissolved their joint venture that was announced in October 2019. In the official statements issued separately by Ford and Mahindra, both automakers have mutually decided to part ways and function as separate entities.
On the 1st of October 2019, Ford India and Mahindra had signed an agreement in Mumbai to create a joint venture that will develop, market and distribute Ford vehicles in India along with Mahindra vehicles in high-growth emerging markets overseas. The JV was to see Mahindra having the 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.
The main aim of the joint venture was to grow the Ford brand in India and export its products to Ford entities globally. Both manufacturers were to share components, platforms, technology and engineering capabilities on their new cars.
Reason for dissolving:
According to the companies, the reasons to call off this JV were “Fundamental changes in global economic and business conditions; caused, in part, by the global pandemic over the past 15 months.”
Ford has already been developing its next big launch, the new C-SUV ( C757) based on the next-gen Mahindra XUV500 (W601). This new SUV was already planned for an early-2022 launch. Therefore, it's likely that Ford will enter into a contract manufacturing arrangement with Mahindra to build the C-SUV in its Chakan plant. Ford is also likely to source the 1.2L TGDI engine from Mahindra for the upgraded 2021 Ecosport compact SUV. The Ford C-SUV too will use the same 2-litre petrol and 2.2 diesel engines that will power the next XUV500.
Stay tuned for further updates.