The two giants of the auto world American automaker Ford and India’s Mahindra & Mahindra have decided to end the ties between them. They both have decided to call it quits on the engine and platform sharing supply pact.
In this year only, both also called off their proposed joint venture. Ford Motor Company was manufacturing three new SUVs in partnership with Mahindra out of which one was a compact SUV. The launch of compact SUV was to be launched in 2022. And as per the plans, this Ford C-SUV built by Mahindra was to be underpinned by the new XUV500 platform. Earlier, the companies decided to enter into a joint venture according to which Mahindra was to acquire Ford's India operations, and in return, Ford was to help Mahindra enter several international markets. Notwithstanding, no official announcement was made from either of the companies. According to information received, the decision to call off is based on several factors and one of them is the carmaker's reassessment of its global plans. It is being said in the reports that the company can be built on the lines of its Ford Territory SUV sold in China.
According to the joint venture, Mahindra's engines were to be used for the remaining other two Ford SUVs and now this plan has also been suspended. The American carmaker Ford's position in the Indian market is not very good. The CEO of the company, Jim Farley, has put more focus on strengthening its global positioning on priority. In addition, Ford has decided to end its partnership with Mahindra, given the financial circumstances leading to the Covid-19 epidemic.
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