Mahindra & Mahindra MD Pawan Goenka said that in view of some fundamental changes due to the Korna transition and the problems of the global economy, the two companies have decided not to complete the partnership.
Mahindra & Mahindra and Ford Motor Company have postponed their joint venture. The two companies announced on Friday that talks have now been held on the joint venture. In October 2019, there was an agreement to enter into an agreement between the two companies regarding joint venture, but by December 31, the period of giving it a complete shape was over.
The fall in the global economy put a brake on the plan
Pawan Goenka, MD, Mahindra & Mahindra, said that in view of some fundamental changes due to Corona transition and problems of the global economy, the two companies have neither decided to complete the partnership. He said, we decided not to carry forward the business transfer agreement now. He said that the recent changes in the global and domestic economy have forced the two companies to take this decision separately.
Investor search for Sangyong
Announcing to relinquish its majority stake in India's operations, Ford Motors has transferred it to Mahindra & Mahindra. Now the controlling stake will be with M&M. According to the plan the two had agreed to work on, Ford's vehicles were to be developed and marketed and distributed in India. Meanwhile, Mahindra & Mahindra is looking for investors for its troubled South Korean subsidiary Sangyong Motor Company. By next week, she can sign on the term sheet with any such investor.