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Old 22nd November 2011, 16:25   #1
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Default M A N takes over MAN Force Trucks Pvt Ltd (India)

MAN Truck & Bus - show_press

MAN Truck & Bus steps up commitment in India

Takeover of the joint venture MAN FORCE TRUCKS Pvt. Ltd. by MAN Truck & Bus.
MAN Truck & Bus AG is taking over the Indian joint venture MAN FORCE TRUCKS Pvt. Ltd. This has been agreed by the two joint venture partners FORCE Motors Ltd. and MAN Truck & Bus AG as of today's date. Subject to receipt of the necessary approvals it is envisaged that the agreement will be implemented by the end of the year.

The joint venture was founded in 2006 and produces heavy MAN CLA trucks for the Indian market and for export to countries in Asia and Africa. The products range from chassis to tippers for the construction industry and semitrailer tractors for long-haul transport. With its level of equipment, comfort and safety, and thanks to its quality production as a premium truck, the MAN CLA enjoys a leading position in the growth markets. Back in 2008 MAN Truck & Bus increased its holding in MAN FORCE TRUCKS Pvt. Ltd. from 30 to 50 percent. In purchasing the shares held by FORCE Motors Ltd., MAN Truck & Bus is assuming sole responsibility for production and sale of the MAN CLA inside and outside India.

With this strategic investment, which is conceived as a long-term commitment, MAN Truck & Bus is underlining the great significance of the Indian market in the context of its BRIC strategy. "In the last few years we have greatly benefited from the experience of our partner FORCE Motors; its knowledge of the Indian market and its long-standing links to local suppliers have been a great help to us as we built up our activities in India. Now we want to and will expand this business on our own," explained Dr. Georg Pachta-Reyhofen, CEO of MAN SE and MAN Truck & Bus AG.

MAN Truck & Bus and FORCE Motors will be cooperating in future too. On basis of a suppliers agreement FORCE Motors will continue to supply parts and components for production of the MAN CLA.

Last edited by Skyline GT-R : 22nd November 2011 at 16:26.
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Old 22nd November 2011, 22:25   #2
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Default Re: M A N takes over MAN Force Trucks Pvt Ltd (India)

Autocar Professional also has a story on this; seems there arent many website which give news about CV world

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Old 22nd November 2011, 22:35   #3
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http://www.thehindubusinessline.com/...cle2650612.ece

Interesting perspective on why this JV failed when the Indian truck market is just starting to come of age. The next few years will see the demand for better trucks (courtesy the NH development program) . Good roads will only bump up the demand for fuel efficient, faster, heavy tonnage trucks.

The loser here seems to be Force motors which lost this foresight where many global truck manufacturers are entering/already in (Nissan diesel, Navistar). For MAN (now part of VW) this is a good opportunity to establish in an emerging market when growth elsewhere is tough to find.

Strange to notice that when Mahindra is diversifying into all auto segments (2wheeler, car, commercial trucking, etc.), Force wants to just stay on as a commercial passenger manufacturer.
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Old 23rd November 2011, 15:34   #4
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Default Re: M A N takes over MAN Force Trucks Pvt Ltd (India)

If Force Motors does indeed aspire to be a serious player in the Passenger segment ( commecial and private ) this moves makes sense. It leaves them with options that might have been restricted if they continued with their MAN JV, going by what the Article states. FML is certainly recognized in the market for the commercial passenger vehicles and thats has been their DNA from the matador to the traveller and trax brands. Their recent foray into the SUV segment is a logical extension of their product\segment strategy.
At the same time the CV space in the coming years is likely to see intense competition that could see eroding margins & overcapacity.
With regards to M&M - one has to consider that the diversification happened after the company reached a certain criticial mass and I guess FML is not there yet.
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Old 23rd December 2011, 12:42   #5
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Default Re: M A N takes over MAN Force Trucks Pvt Ltd (India)

Reasons for break up of the JV - Force Motors says MAN JV did not live up to expectations.

"Force Motors had announced to exit the JV by selling 5.58 lakh shares for 150 million euro (over Rs 1,050 crore) to the German partner. Firodia has stated "Earlier, we were a standalone entity and were producing the vehicles under a licence agreement from MAN. Later they wanted to form a JV with a promise of exporting 12,000 units every year. However, exports never took off."
The reports stated that besides, MAN Truck & Bus got entangled in various issues globally such as developments related to ownership of the firm, he added. By January-end, all the formalities of the company's exit from the erstwhile JV will be completed, he said. "





Force Motors says MAN JV did not live up to expectations | WheelsUnplugged
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Old 7th June 2012, 09:52   #6
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Default Re: M A N takes over MAN Force Trucks Pvt Ltd (India)

Volkswagen hikes MAN stake, can now dominate!

Quote:
Europe's biggest carmaker hiked its voting stake in the German truck, bus and coach maker to just over 75 percent from a previous 73.76 percent.

This offers Volkswagen the opportunity to ask shareholders to approve a domination agreement, which would give it full strategic and financial control over MAN.

Volkswagen hikes MAN stake, can now dominate | Reuters
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