CURRENT AFFAIRS

Detailed explanation-1: -Mahindra will hold 51% stake in the new venture with Ford holding the rest. The Detroit-based company will transfer its India operations to the joint venture, including its manufacturing plants and employees.

Detailed explanation-2: -Ford re-entered the Indian market in October 1995 as Mahindra Ford India Limited (MFIL), a 50-50 joint venture with Mahindra & Mahindra Limited.

Detailed explanation-3: -By giving Mahindra a majority 51 percent stake in the new joint venture, Ford had effectively given the wheel of the company to its partner.

Detailed explanation-4: -While Ford was supposed to move its entire India operations under the JV, owning 49 percent stake in the venture, Mahindra was to have a controlling 51 percent stake. Now both the carmakers have mutually agreed to pull the plug on the joint venture.

Detailed explanation-5: -The news on Tata Passenger Electric Mobility Limited’s (TPEML) agreement with Ford India Private Limited (FIPL) to acquire the American automaker’s manufacturing plant in Sanand, Gujarat broke out on December 30, 2022.