Business Development Asia LLC
South East Asian Automotive News
ISSUE 3, OCTOBER 1997
REGIONAL
Daimler-Benz has increased its equity stake in its JV with Telco in India from 51% to 76%. In a capital-raising exercise, the German group has taken full control of the marketing of its Mercedes-Benz cars from Telco, a subsidiary of the Tata Group, India's biggest industrial conglomerate. In addition, Daimler has also suggested that it will increase its presence in the commercial truck market which is presently dominated by Telco. (September 11th 1997)
Mitsuba Electric Manufacturing, an affiliate of Honda, is looking to strengthen production in South East Asia with two projects in Vietnam and Thailand. Mitsuba will undertake a JV in Vietnam to manufacture starter motors for motorbikes and other parts. It will also increase production of starter motors for cars and bikes in Thailand. Mitsuba is hoping to compensate for declining output in Japan by strengthening production in the region. (June 11th 1997)
Mitsubishi has received approval from the Chinese government to set up a JV engine manufacturing plant in Shenyang with China Aerospace Automotive Industry Group, Shenyang Construction, and MCIC Holdings. The JV will establish the Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co with capital of Yuan730m (US$88m). The new facility will develop, manufacture, and market vehicle engines and transmissions. (September 4th 1997)
Suzuki Motor of Japan and the Indian Government have returned to court in Delhi to settle a dispute over the management of Maruti, their vehicle JV. The dispute arose when Suzuki challenged the Government's appointment of R.S.S.N.L. Bhaskarudu as managing director of Maruti. Suzuki has also filed a petition challenging the appointment and the validity of the annual general meeting before the International Court of Arbitration in Paris. Maruti currently sells 80% of India's passenger cars. (September 22nd 1997)
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