By Ankit Ajmera and Ben Klayman
(Reuters) – Ford Motor Co said on Thursday it was calling off its previously announced automotive joint venture with India’s Mahindra and Mahindra Ltd due to the challenges caused by the COVID-19 pandemic. (https://ford.to/2X2V6Gg)
The decision was driven by changes in the global economy over the last 15 months, causing both companies to reassess their capital allocation priorities.
“The global economy and business environment are not the same as October last year,” Ford spokesman T.R. Reid said.
The deadline to finalize a joint venture between the companies was Dec. 31, and both made the decision to end the agreement rather than close a deal or extend the timetable to do so, Reid said.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel and David Gregorio)
