[Aditya]

Hero MotoCorp Ltd. has formed a joint venture with Italian company, Magneti Marelli S.p.A. to develop fueling systems for two wheelers. The new entity will be known as HMC-MM Auto Ltd. Hero MotoCorp will hold 60% of the stake in the joint venture, while Magneti Marelli will hold the remaining 40%.

Link to News Article

Hero gone MAD!
Definitely Yes. They have gone MAD.

Why tie up with magneti marelli, which is owned by FIAT. Already there are enough fuelling systems in the market from Bosch, and its peers. Is hero planning to make new carburators from scratch? Or they going to reinvent Fujel Injection system by plonking in a Injector into Carb Innovative! Isnt it?

If they do R&D now, How many months/years it takes to create a new fuelling products out of it? wont the cost of vehicle shoot UP? Also, what happens to company's brand name if any product fails. The best example for their R&D disaster is the ZMR. What would happen if such mistake happens with a splendor or passion?

Or, are they planning to manufacture and supply spares to 4 wheeler companies? But the title says, its only for 2 wheelers. I dont understand anything out of it.

If any one has any clear picture, please post it here.

[justin.das]

Magneti Marelli is a Technological Leader in this sector. Marelli's systems are in use across all most all the the brands including bikes and cars.Bosch is not the only one supplier in the world and the manufactures reserve the rights to choose which supplier to go for.Magneti Marelli’s technological offer covers all the the GASOLINE DIRECT INJECTION TECHNOLOGY system components (injectors, pump, electronic control unit, software) – as well as the integration know-how.Magneti Marelli so far has produced approximately 18 million GDI injectors.18 million is not a small number

[rahul4321]

What is Hero upto? First they get into a tie up with EBR, now with MM. Wasnt there also some news about them tying up with Ducati (I may be wrong here). What are they planning to do; integrate the technologies of 3 different partners to come up with a swashbuckling engine? Nuts; this doesnt even make sense now. First it was Honda doing all the R&D. Now they're going into tech partnerships and effectively outsourcing all the R&D

The Honda guys must be scratching their heads wondering what their old partners are upto. On a different note; i'd like to see a movie starring Priyanka Chopra, Ranbir Kapoor and Akshay Kumar. I can just imagine the argument of the two brand's representatives arguing with the producers in deciding whose vehicle to feature in the movie (2 x Hero v/s 1 Honda).

[a4anurag]

To add to the above link Hero MotorCorp has roped in Erik Buell Racing (EBR) and will also rope an Italian firm for the designing part.

I am not sure what the CEO is up to as it is all JV that he doing.

Hope it works for the good.

The JV company would start manufacturing by the end of 2014. Currently, only two models from Hero MotoCorp–ZMR and Glamour 125 cc, have advanced fuel injection systems. Commenting on the JV, Magneti Marelli CEO Eugenio Razelli said the aim is to partner with Hero MotoCorp in order to equip advanced power train solutions to all Hero motorcycles and scooters.

The JV would help build electronic fuel injection systems which will offer advantages to the engines used in Hero’s two wheelers, Razelli said. To enhance its R&D capabilities, HeroMotoCorp has already forged alliances with US based Erik Buell Racing (EBR) and Austria’s AVL.

The company has also roped in Italian two-wheeler design firm ‘Engines Engineering’ to partner it in bringing next generation product line up

Source: http://www.firstpost.com/business/he...w-1265967.html

Anurag.

[Sutripta]

Hero has, and thinks will continue to have, enough volumes where a manufacturing license will make economic sense compared to buying components/ subassemblies.

The R&D JV structuring might be for tax purposes. And in the long run, for technology absorption.

Regards
Sutripta

[ganeshsp]

Guys, Hero clearly lacks the technical competence to take on even the home grown bajaj; let alone their Japanese rivals. Given the fact, the J.V. could not have come at a better time. It is a need of the hour.
In my opinion, hero have to focus more on performance oriented bikes rather than targeting volumes. Else, they have a risk of becoming another TVS. Take a look at what TVS did post the Suzuki split. They launched a new bike every 3 months which were eventually scrapped in less than a year. They never really focused on improving the technology.
Clever people learn from other's mistakes. Hence, J.V is the way for hero. Tie up with both EBR and MM will help diversify their RnD so they won't land up in a similar situation post the Honda split.

[a4anurag]

Originally Posted by ganeshsp

Guys, Hero clearly lacks the technical competence to take on even the home grown bajaj; let alone their Japanese rivals. Given the fact, the J.V. could not have come at a better time. It is a need of the hour.
In my opinion, hero have to focus more on performance oriented bikes rather than targeting volumes. Else, they have a risk of becoming another TVS. Take a look at what TVS did post the Suzuki split. They launched a new bike every 3 months which were eventually scrapped in less than a year. They never really focused on improving the technology.
Clever people learn from other's mistakes. Hence, J.V is the way for hero. Tie up with both EBR and MM will help diversify their RnD so they won't land up in a similar situation post the Honda split.

I agree with you that Hero MotorCorp is bad on the R & D front but now they have roped in the companies it will be better for setting an R & D lab and keep doing so. They'll have to learn from their mistakes of not concentrating on R & D when the Hero Honda JV was going on.

Hope a department is set up soon and good stuff rolls out from there onto the roads.

Anurag.