MAN Nutzfahrzeuge AG has increased its share in the joint venture with Force Motors Ltd. from 30 to 50 per cent. “In increasing our share we are taking on more responsibility for the further successful expansion of our activities in India. MAN will be significantly spurring on sale of our Indian-built trucks in the growth markets in Asia and Africa,” said Anton Weinmann, Chairman of the Executive Board of the MAN Nutzfahrzeuge Group.
“Force Motors welcomes the closer involvement of MAN. This increase in its holding is proof of its confidence in our successful joint venture,” said Abhay Firodia, Chairman and Managing Director of Force Motors.
Begun in 2006 the joint venture produces heavy trucks with the MAN CLA brand for India and for export to Asian and African countries. Some 90 per cent of the parts used now come from local suppliers who are meeting MAN’s high quality standards. The product range extends from chassis via construction-site tippers to semi-trailer tractors for long-haul transport.
The MAN CLA occupies a leading position as a premium truck in the Asian market, thanks to its technical equipment standard, comfort, safety and high-quality production.
The joint venture, which is now in a position to invest in further expansion of production and the sales network, will be managed hereafter by MAN Nutzfahrzeuge and Force Motors in close co-ordination.
MAN acquires VW Truck & Bus business
MAN AG is to acquire VW Truck & Bus based in Resende in Brazil from Volkswagen AG. The company with an enterprise value of 1,175 million euros is set to be transferred on January 1. The executive bodies of MAN and VW have already granted their approval for the deal.
VW Truck & Bus which has been producing trucks and buses in Resende since 1996 is Brazil’s largest truck manufacturer and leads the market for trucks with a gross vehicle weight of more than five tons. The vehicles are primarily sold in Latin America and South Africa. Around 47,000 trucks and buses were supplied in 2007.
The company has a comprehensive sales and service network in Brazil and neighboring countries. Around 5,000 employees work at the Resende plant, one of the most modern truck production facilities for VW Truck & Bus and its partner suppliers. Acquiring the Brazilian company and its strong brand enables MAN to expand into the South American market, thus consistently strengthening its commercial vehicles business.
The CEO of MAN AG, Håkan Samuelsson, sees the acquisition as an important step for the MAN Group: “Having concentrated on our core business units, MAN is now focusing on expansion in all business areas. The acquisition of VW Truck & Bus in Brazil marks another milestone in our international growth in trucks and buses. The new business area with its strong market position will provide MAN with access to the Latin American market. At the same time, we can see considerable synergy potential for our production network. VW Truck & Bus has a strong regional sales network and a state-of-the-art truck and bus plant at its Resende site. We look forward to further strengthening the company’s position together with its President, Mr. Roberto Cortes, his management team and the employees.”
