Spark goes out of GM India's deal with Reva
The Mahindra and Mahindra (M&M) acquisition of electric car manufacturer Reva Electric Car company has taken the spark out of another deal that the latter entered into with General Motors India last year.autos Updated: May 26, 2010 20:49 IST
The Mahindra and Mahindra (M&M) acquisition of electric car manufacturer Reva Electric Car company has taken the spark out of another deal that the latter entered into with General Motors India last year.
The Indian subsidiary of American automobile maker General Motors Wednesday said it may not be able to proceed with its agreement with Reva Electric for development of electric cars -- mainly the electric variant of the Spark model.
"We may not continue the Spark EV (electric vehicle) programme with Reva in the light of this development and will pursue our own electric vehicle programme. An announcement to this effect will be issued soon," Vice President of General Motors India P Balendran said.
Last year Reva Electric and General Motors India had signed an agreement to jointly develop and produce electric cars and also make India a manufacturing hub for such cars for global markets.
"General Motors India has indicated to us that it is looking at other alternatives for electric vehicles," Reva’s Chief Financial Officer Rajesh Ramaiah said.
Declining to share any financial details about the agreement with General Motors India, Ramaiah said that some exchange of money had taken place between the two companies.
According to M&M’s spokesperson, the Indian automotive group is not averse to continuing with the Reva-General Motors India’s agreement.
First Published: May 26, 2010 20:47 IST