MAN may acquire majority stake in JV with Force Motors
According to some reports in the media, German commercial vehicles manufacturer MAN Nutzfahrzeuge is not too happy with the performance of MAN Force Trucks, its joint venture company with Force Motors which was formed back in 2005. MAN currently holds 30 percent in the JV, but is said to be interested in acquiring a majority stakeholding in MAN Force Trucks, which has its manufacturing facility located at Pithampur (near Indore), in Madhya Pradesh.
On the other hand, Force Motors and MAN spokespersons refuse to comment, only saying that both companies are planning to jointly increase the share capital of the JV, by both promoters subscribing. The idea, they say, is to strengthen the company on a long-term basis.
It's being said that MAN is worried about the entry of global players like Volvo and Daimler on the Indian commercial vehicles scenario. The German company feels it needs more control over its Indian operations in order to be able to take on other international commercial vehicle manufacturers.
[Via: indiaautomotive]