M&M, Ford end discussions of automotive joint venture

Mahindra & Mahindra and Ford Motor Company have mutually, amicably determined they will not complete a previously announced automotive joint venture between their companies.

The action followed passing of the December 31, longstop, or expiration, date of a definitive agreement the organizations entered into in October 2019.

According to the companies, the outcome was driven by fundamental changes in global economic and business conditions - caused, in part, by the global pandemic - since the agreement was first announced. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.

M&M said that this decision will not have any impact on its product plan. It is well positioned in its core true SUV DNA and product platforms with a strong focus on financial performance. In addition, M&M is accelerating its efforts to establish leadership in electric SUVs.

The announcement was made after market hours yesterday, 31 December 2020. Shares of M&M fell 0.01% to settle at Rs 720.60 yesterday.

M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.

Powered by Capital Market - Live News