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Ford, Mahindra Call Off Auto Joint Venture Efforts

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Ford Motor and India's Mahindra and Mahindra Ltd have decided to discontinue their efforts to form a joint venture in India due to challenges caused by COVID-19 pandemic.

In October 2019, Ford Motor and Mahindra & Mahindra had agreed to form a joint venture that would develop, market and distribute Ford brand vehicles in India and Ford brand and Mahindra brand vehicles in high-growth emerging markets around the world.

Ford had then said that it would own a 49 percent stake in the joint venture, while Mahindra would own a 51 percent controlling stake.

However, with global economic and business conditions undergoing fundamental changes as a result of the global pandemic over the past few months, the companies have decided to pull the plug on their joint venture after reassessing their respective capital allocation priorities.

Ford said Thursday that its independent operations in India will continue. It is actively evaluating its businesses around the world, including in India, making choices and allocating capital in ways that advance the company's plan to achieve an 8% company adjusted EBIT margin and generate consistently strong adjusted free cash flow.

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