Ford Motor Co. is reversing plans to divest the majority of its Indian operations to Mahindra & Mahindra Ltd., deciding to pull out of a proposed joint venture and continue its independent business in the country.
The two companies agreed to terminate the venture after reassessing in part due to the global coronavirus pandemic, they said Thursday. The decision ends an agreement reached more than a year ago under which Ford was expected to fold its local operations, including two factories, into a joint venture majority controlled by Mahindra, a leading Indian manufacturer of sports utility vehicles.
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The future of Ford’s business in India is unclear, as it has struggled for more than two decades to grow into the world’s fourth-largest car market. “The company is actively evaluating its business around the world, including India,” Ford said in a statement.
Mahindra said in its own statement that the termination of the company would not affect its product plans.
The decision was made as the December 31 deadline to formalize the planned partnership approached. Jim Farley, who became the chief executive of the American automaker in October, said last year that the joint venture with Mahindra could allow Ford to double its revenue from India.
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