Ford Motor Co and Mahindra & Mahindra (M&M) on Friday said that they have mutually and amicably decided to scrap a previously announced automotive joint venture citing fundamental changes in global economic and business conditions caused, in part, by the coronavirus pandemic.

There was no joint statement by the automakers as both of the companies issued deprecate press releases stating their reasons to end the joint venture.

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The statement used by the US auto major said, “Ford Motor Company and Mahindra & Mahindra have mutually and amicably determined they will not complete a previously announced automotive joint venture between their respective companies. The decision follows the passing of the December 31 ‘longstop,’ or expiration, date of a definitive agreement the organizations entered into in October 2019.”

The outcome was driven by fundamental changes in global economic and business conditions caused, in part, by the global pandemic over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities, it added.

Ford further said its independent operations in India will continue as is.

As per the now-defunct plans, Mahindra was to acquire Ford’s business in India, and the US automaker would have held balance 49 per cent equity shareholding in NewCo. The new entity was to develop, market and distribute Ford brand vehicles in India while also selling both, Mahindra and Ford, cars in the high-growth emerging markets.

In a regulatory filing, M&M said, “this decision will not have any impact on the company’s product plan. It is well positioned in its core true SUV DNA and product platforms with a strong focus on financial performance. In addition, the Company is accelerating its efforts to establish leadership in electric SUVs.”

In October 2019, the two companies had announced an agreement under which Mahindra & Mahindra would acquire majority stake in a wholly-owned arm of Ford Motor Co (FMC) that will take over the automotive business of the US auto major in India.

Ford and M&M had in September 2017, inked a pact to explore a strategic alliance covering areas like product development, electric vehicles and distribution in India and emerging markets.

In 2018, the two partners have agreed to develop new SUVs, a small electric vehicle and connected car solutions besides supply of Mahindra powertrains to extend Ford’s product range as part of several initiatives.