Tuesday, 22 November 2011

Force Motors decided to exit from its German JV partner, Man Trucks

Commercial vehicles maker Force Motors Ltd has decided to sell its 50% stake in MAN Force Trucks Pvt. Ltd to its German joint venture (JV) partner and quit the heavy duty trucks segment.

Force Motors will sell nearly 56 million equity shares in MAN Force Trucks to MAN Truck and Bus AG for €150 million (Rs.1,050.54 crore), subject to necessary approvals, it said in a statement to BSE Ltd.The Pune-based company had initially held a 70% stake in the joint venture, formed in 2003, but later became an equal partner of MAN Trucks.

“We concluded that they should be allowed to take the full lead,” Force Motors chairman Abhay Firodia said.

In April-October this year, 162,026 such trucks were sold in the domestic market, an expansion of 12% over the same period last year. "They (Force Motors and MAN Trucks) realized the JV was going nowhere and neither of them was able to add any value. They had to take a decision on how they want to take things forward,” he said.


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