Ford and Mahindra intended to jointly develop models for growth markets through a joint venture. However, that is not going to happen, both companies announce.
Towards the end of 2019, Ford and Mahindra announced that they wanted to expand their existing partnership. This had to be fleshed out in the form of a joint venture. At that time there was only talk of a memorandum of understanding, but it is now known that it will not be followed up.
Ford and Mahindra both say in a statement that the current crisis situation is largely the cause of this. “This outcome stems from the fundamental changes in the global economy and business conditions, caused in part by the pandemic of the past 15 months. Those changes have prompted Ford and Mahindra to individually decide that financial targets should be reviewed.” Mahindra would have a 51 percent stake in the joint venture, Ford 49 percent.
While Ford and Mahindra already work together by exchanging powertrains and thinking together about connected car solutions, the joint venture had to go a significant step further. The idea was to really get together with models for the growth markets, such as India and South America. Specifically, it was about three crossovers with conventional drive and eventually there would also be EVs. That kite does not work now.