Mahindra and Ford announced today that they will not continue the joint venture in India. The companies said in separate statements that the decision was driven by changes in the global economy over the past 15 months, prompting both to re-evaluate their capital allocation priorities. In 2019, Ford and Mahindra had said they would form a joint venture in India in a move to cut vehicle development and production costs for emerging markets, but now, with the cancellation of the joint venture, does it end any way? collaboration between companies? two companies?
Mahindra’s ew petrol-powered EcoSport to launch in less than 1 year
No way. The company has already signed a collaboration with Ford to share platforms and even share engines and this was called Project Black. Speaking to the media, Rajesh Jejurikar, Managing Director, Automotive and Agricultural Sector, Mahindra, “Our Joint Venture plans have ended, but we are still open to collaborate with the company. In fact, we are also looking for partners in the electric vehicle space, and platform and engine sharing are also possibilities where both companies can work together. “
Certain ongoing projects between Ford and Mahindra will continue
While this is good news, Mahindra CEO Dr. Pawan Goenka made it clear that the company is not bound by any of the agreements that have been previously signed. “We had signed a collaboration in 5 areas. The first was the development of the C601 platform, which is now in an advanced stage, so it will continue. The second was the BS6 petrol engine for the Ecosport, again which is in an advanced stage and a significant investment has been made to launch that product in less than a year. The third was connectivity and that is already in place with cars like the XUV500. The fourth was in the field of mobility services and has already been suspended. Finally, there was the Aspire Electric car and that project was discontinued because the investment was too large and the product did not fit into Mahindra’s EV strategy, which has a strong focus on SUVs. “
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All collaborations, then under the ‘Black Project’ will be subject to review and only then will a decision be made about the future of these companies.
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