The Hindu Business Line : Maruti forms joint venture with Fiat group co Magneti

Maruti Suzuki India along with its parent company, Suzuki Motor Corporation, on Thursday announced a joint venture agreement with the €4.5-billion company Magneti Marelli, a subsidiary of the Fiat group to produce electronic control units for diesel engines.

The new manufacturing facility would not only cater to Maruti Suzuki diesel cars but also to other car manufacturers, said a company statement.

At an initial investment of Rs 75 crore, the new facility would be located in Maruti’s existing suppliers’ park at Manesar. The company said that production of these units would begin at the end of 2008 calendar year with a maximum capacity of 5,00,000 units. As per the joint venture, Magneti Marelli would hold 51 per cent stake in the share capital, whereas Suzuki and Maruti will hold 30 and 19 per cent, respectively.

Magneti Marelli is into designing and manufacturing high-tech components and systems, including powertrains, suspension system and shock absorbers, lighting and electronic systems, exhaust systems, and aftermarket parts and services.

Currently, Fiat and Tata Motors have a joint production and marketing agreement.

However, the company spokesperson said that it would not come in the way of Maruti’s joint venture.

The company recently entered in to a joint venture with Futaba Co for manufacturing and sale of exhaust systems. Maruti Suzuki already has 14 joint ventures with various auto component suppliers like Sona Koyo Steering Systems, Asahi Glass, Jay Bharat Maruti Ltd, Caparo Maruti Ltd, Denso, Machino Plastics among others, all of which are located in the company’s new facility at Manesar.

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