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| M&M may pull out of their JV with Renault-Nissan: Srcs A in exclusive, sources have told CNBC-TV18 that Mahindra & Mahindra may pull out of the Renault-Nissan and M&M joint plant in Chennai and focus on the Chakan plant for production. Sources added that Renault-Nissan will now have a 50-50 partnership for the Chennai plant. Renault will, however, continue joint production of Logan at the Nasik plant. M&M is likely to pull out from the Joint venture between Mahindra-Renault and Nissan that was formed sometime in February last year. Now, this new joint venture will be between Renault and Nissan and it will be a 50-50 joint venture. The three companies had initially committed Rs 4,000 crore fo this joint venture wherein Mahindra was a 50% share holder and the remaining 25% was split between Renault and Nissan. Now it will be a 50-50 between Renault and Nissan and they both will invest about Rs 2000 crore each. That Mahindra has pulled out of this venture does not mean that Mahindra and Renault products will not be made. The plant that manufactures Logan at Nasik will still continue, in fact, even the Renault cars which will be produced from the Chennai plant will be marketed through MRPL, which is Mahindra Renault Private Ltd. They will be distributed and market through the same joint venture that they had initially. But now Mahindra wont be a part of that three-way joint venture which was formed. CNBC-TV18 tired to speak with Mahindra and Renault but they both declined to comment on this matter. As mentioned, Logan will still continue and that’s what the plan is currently. CNBC-TV18 Disclaimer This information is source-based and has not been provided to the stock exchanges and is source-based. Moneycontrol India :: News :: M&M may pull out of their JV with Renault-Nissan: Srcs :: Mahindra and Mahindra :: Business :: NULL |
| M&M decided to part ways from the JV, in which it held 50 per cent stake with the remaining shared equally between the other two, as it was unhappy with the French firm Renault and Japan's Nissan firming up multiple partnerships in India for different ventures. Industry sources, however, said M&M was peeved at the fact that Renault decided to go with Bajaj Auto for a small car project, despite the fact that the partners have an existing joint venture to produce mid sized-sedan Logan in India. Also, the fact that Nissan had firmed up agreement with Ashok Leyland for three separate joint ventures for light commercial venture manufacturing in India added to M&M's decision not to be a part of the tripartite joint venture anymore. |
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Originally Posted by GTO
(Post 677425)
Anyone remember Mahindra-Ford? M&M was not too much more than a local tour guide for them. |
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Originally Posted by Steeroid
(Post 677389)
deja vu PAL Peugeot......the French simply cannot seem to do business here. |
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Originally Posted by GTO
(Post 677425)
I think this is only an indication of times to come. Eventually, Renault will drive on the Indian roads alone. Anyone remember Mahindra-Ford? M&M was not too much more than a local tour guide for them. |
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Originally Posted by ashutoshb
(Post 677320)
. . . ...CNBC-TV18 tired to speak with Mahindra and Renault but they both declined to comment on this matter. As mentioned, Logan will still continue and that’s what the plan is currently. CNBC-TV18 Disclaimer This information is source-based and has not been provided to the stock exchanges and is source-based. |
| Renault’s budget Logan car, which retails at €5,800 to €7,600 ($8,566-$11,225), was the company’s most popular model, selling more than 360,000 units. About 15 per cent of all vehicles sold by the Renault group are Logans, which are available as saloons, vans, people carriers and – starting this year – pick-up trucks. In Latin America, Asia and Russia, the Logan is sold under the Renault brand. In Europe and North Africa, the Logan is sold under the Dacia brand, the name of Romania’s former national car producer in the Soviet era, which Renault bought in 1999. The Renault group’s fastest-growing region was eastern Europe, with sales in Russia, Romania and Ukraine all rising more than a third. Russia, Romania and South Korea – where Renault took over Samsung’s car manufacturing operations – are the only countries outside western Europe in which Renault sells more than 100,000 cars a year. |
| YOu also need to look at it from Renault's perspective. M&M priced the Logan badly and have shown no marketing flair. |
| " There have been several media reports on Mahindra pulling out of the tripartite manufacturing plant to be set up in Chennai. We would not like to comment on these speculative reports." "However, we would like to make a clarification with respect to a specific comment made in some media reports about Mahindra being unhappy with the multiple alliances of Renault and Nissan in India. On this point we would like to reiterate, as we have done in the past, that M&M has no objections to Renault and Nissan having multiple alliances as long as they do not conflict with the existing Mahindra Renault JV. Moreover, multiple alliances are a normal practice in the auto industry and M&M itself has multiple alliances in India." "We would also like to reiterate that M&M has a very strong and healthy relationship with Renault and both partners are proud of the success of the Logan and the recognition and accolades the product has received which is a result of the co-operation between the two partners," |
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Originally Posted by ashutoshb
(Post 678055)
Mahindra's press release: info source: MACHINIST - Pawan Goenka issues statement regarding M&M pulling out of JV |
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