New Delhi: Ford Motor Co on Friday said that it has called off its joint venture with India’s Mahindra and Mahindra Ltd due to the challenges caused by the COVID-19 pandemic. Issuing a joint statement, both the companies said that the decision was driven by changes in the global economy over the last 15 months, causing both to reassess their capital allocation priorities.Also Read - Ford, Mahindra Group to explore strategic alliance

The Fiord company said that the global economy and business environment are not the same as October last year. The joint statement came as the deadline to finalize a joint venture between the companies was December 31, and both made the decision to end the agreement rather than close a deal or extend the timetable to do so. Also Read - Neha Dhupia urges support for education of girls

Both the companies had in October 2019 said that they would form a joint venture in India in a move to cut costs for developing and producing vehicles for emerging markets. Both the companies had also stated that the time they expected to launch three new utility vehicles, starting with a midsize SUV, and also jointly develop electric vehicles for emerging markets. Also Read - META Lifetime Achievement honour for veteran Arun Kakade