DAIMLER EXITS BAJAJ TEMPO
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Mumbai | Published 20.04.01, 12:00 AM|
Mumbai, April 20 : Mumbai, April 20: DaimlerChrysler AG and the Firodias are parting ways in Bajaj Tempo Ltd. Daimler today announced that it is selling its 16.8 per cent stake in the Pune-based company in favour of an investment firm belonging to the Firodia group. Explaining the rationale for terminating the over 43-year old financial relationship, that resulted in the manufacture of a four-cylinder diesel engine, it said this was being done as there is little synergy between the products and markets of the two companies. 'Daimler AG's global strategy necessitates concentration on its own brand products and Bajaj Tempo too, in its endeavour to serve specific Indian transportation requirement, has developed its own range of three wheelers, agricultural tractors, multi-utility vehicles and light commercial vehicles,' a press statement said. With the 'product commonality and market synergies between the two companies' decreasing, Daimler decided to offload its stake in Bajaj Tempo to Jaya Hind Investments Pvt Ltd, an investment company belonging to the Firodias. While Bajaj Tempo officials were not available for comment, the price at which the deal was struck was not known. However, both the parties have decided to continue their association in other areas. Bajaj Tempo will continue to supply spare parts such as pressed parts and sub-assemblies and transmission components to DaimlerChrysler. The supply arrangement for Mercedes engines to be assembled by Bajaj Tempo for Mercedes Benz India will also continue. Following Daimler's decision to pull out, the Bajaj Tempo board is likely to see some changes. The car major has three nominees-Hanx Ulrich Mark, Helmut Petro, Rolf Werner Frierrich Bartke-on the board of Bajaj Tempo.