Ford Motor Company has reportedly frozen all its ongoing projects with Mahindra & Mahindra as it draws up a new strategy for India.

Ford and Mahindra at the turn of the year had said they had stopped their negotiations on a joint venture citing changes in the global economic and business conditions, partly because of the Covid-19 pandemic.

Since then the two companies said they would reassess their capital allocation priorities. Consequently, Ford said it would continue with its Indian operations independently.

In October 2019, Mahindra and Ford had announced the signing of a definitive agreement to create a joint venture that will develop, market and distribute Ford brand vehicles in India and Mahindra brand vehicles in high-growth emerging markets around the world.

The joint venture, in which Mahindra was to hold a 51 percent controlling stake, would have seen Ford transferring its India operations to this enterprise, including its personnel and assembly plants in Chennai and Sanand in Gujarat.

They had also planned to develop at least three sports utility vehicles (SUVs) for India and the emerging markets as well as powertrains and technology.

A Reuters report citing sources said that Ford is weighing options which could include working out a new relationship with Mahindra or ending their relationship and related vehicles completely. The report added that a decision could be taken in a month on whether to join hands with Mahindra in a different form or not.

This comes at a time Ford’s current CEO Jim Farley wants Indian operations to be more profitable.

Among the SUVs which were to be built was a mid-sized vehicle that would be made by Mahindra on its platform and powertrain. This was scheduled to be launched in 2022.

Here, the report added that Ford is also negotiating new terms for an engine M&M was to supply for its EcoSport SUV later this year.

When they terminated their joint venture on January 1, Ford said that it was actively evaluating its businesses around the world, including in India.