Maruti, Suzuki, Fiat firm in tripartite venture
They enter a tripartite JV to make ECUs of diesel engines at an initial investment of Rs 75 crore, reports Deepak Joshi.autos Updated: Oct 11, 2007 23:34 IST
Maruti Suzuki India (MSIL), Japan's Suzuki Motor Corporation (SMC) and Fiat Group company Magneti Marelli have entered into a tripartite joint-venture agreement to make electronic control units (ECU) of diesel engines at an initial investment of about Rs 75 crore (15 million euro).
Maruti’s 1.5-litre diesel engines are manufactured on licence from Fiat Auto.
Magneti Marelli will contribute 51 per cent of the share capital of the new company, Suzuki will bring 30 per cent and Maruti 19 per cent. The project would be funded through a mix of equity and debt.
The three companies would jointly invest in setting up a manufacturing unit at Manesar in Haryana, expected to be operational by the end of the calendar year 2008. The facility, when fully operational, would have a capacity to produce five lakh units per annum, MSIL said.
The manufacturing unit would be part of the Suppliers Park being set up by MSIL at its campus in Manesar. ECUs produced in Manesar would be initially used to meet internal demands of MSIL diesel cars and later also cater to other car manufacturers.
“The joint venture with Suzuki and Maruti significantly strengthens an important partnership already in existence, giving the car maker the possibility to rely on competitive systems featuring cutting-edge technology and the components maker the chance to increase its presence in a strategic and fast-growing market,” Magneti Marelli CEO Eugenio Razelli said in the statement.
Magneti Marelli, a part of Fiat Group, designs and produces high-tech components and systems for motor vehicles. The company has 45 production facilities, 9 R&D centres and 27 application centres spread across 16 countries. The company had a turnover of 4.5 billion euro in 2006.
First Published: Oct 11, 2007 23:23 IST