DELHI, India — Daimler AG has entered into a joint venture with Indian truck manufacturer Hero Group, to form Daimler Hero Motor Corporation.
The partners plan to produce light-, medium- and heavy-duty commercial vehicles for the Indian market under a new brand name. Construction of a new manufacturing facility in India is expected to take place in 2010. At a later date, the new company will begin producing commercial vehicles for export to other emerging markets.
Together, Daimler and the Hero group will invest 360 million Euros (about CAD $574 million) into the joint venture, the companies have announced.
Marc Llistosella of Daimler Group will become CEO of the newly-formed partnership and Hero’s Amit Chaturvedi will be co-CEO.
“Today is a further important milestone for Daimler Trucks and our Asia strategy,” said Andreas Renschler, member of the Daimler AG Board of Management and head of Daimler Trucks. “In the Hero Group we have found an ideal partner, as the two companies perfectly complement one another in terms of the experience and expertise they contribute to the joint venture. The fact that the negotiations and the approval process ran so smoothly makes me very confident that the establishment of the new company will proceed just as rapidly and successfully.”
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