Tuesday, 14 May 2013

Mercedes ends 6 year old pact with Tata Motors

Mercedes Benz ended the six year old pact with Tata Motors when it inaugurated its new paint shop as a part of its expansion facility at Chakan facility near Pune. Said Eberhard Kern, CMD & CEO, Mercedes Benz India: "Mercedes Benz India has inaugurated its own paint shop and we no longer use the Tata Motors facility."

Since Mercedes Benz India began its operations in India, it has been using Tata Motors paint shop as a part of sharing arrangement between two companies The pact came up for renewal in December 2010 when Mercedes Benz decided to go for its own paint shop and has now inaugurated the same.

In another change that has happened at Mercedes group, India is restructuring in which all the cars will now be made at Chakan plant and all trucks will be made in Chennai.

Daimler has invested around Rs 850 crore in the Mercedes Benz Chakan plant so far and another $1 billion in its commercial vehicle plant outside Chennai. The end of the paint shop arrangement has brought the curtains down on one of the longest running local-global collaborations in the country.


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