• »
  • »
  • Force Motors says joint venture with MAN didn’t live up to expectations
Auto News

Force Motors says joint venture with MAN didn’t live up to expectations

By Motortrend India Staff   |   22 December,2011

Inability to live up to expectations lead to the breakup of its joint venture with Germany’s MAN Truck & Bus AG, commercial vehicles maker Force Motors on Thursday said.


"The JV never lived up to our expectations," Force Motors Managing Director Prasan Firodia told reporters here while commenting about the performance of the joint venture firm, MAN FORCE Trucks Pvt Ltd (MFTPL), formed in 2006.


Last month, Pune-based 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.


"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," Firodia said.


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.


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.


In 2003, Force Motors had planned to manufacture heavy commercial vehicles for the Indian market by sourcing technology from overseas. It had procured engines, cabs and axles from MAN, while gearboxes were sourced from ZF.


Later, Force Motors and MAN formed the joint venture company in 2006. At the time of formation of the JV, the Indian firm was the majority partner with 80 per cent stake, which later became a 50:50 partnership in 2008.



Related Content