M&M Looks to stop investments in Mahindra Renault JV

Mahindra & Mahindra (M&M) is likely to freeze investments in its troubled joint venture with Renault, ceding a majority stake and management control to the French company. Future investments will be by Renault, resulting in a fall in M&M’s 51% stake over a period of time, according to a number of persons close to the development.

Full Story:-
http://clublogan.com/now-mm-looks-to-stop-investments-in-mahindra-renault-jv/

So, what is the future for the existing Logan owners. Who will take care of service, spare parts and so on?

They have a responsibilty towards the Logan owners Mahindra must and will have to keep you supplied with parts until it is passed onto another firm
We still have Brits buying parts from India for their Motorbikes which ones are made there still ?? is it the Royal Enfield ? and didnt the Indian firm make one with a Diesel Engine ?
I would not worry to much just drive your cars and enjoy them
OH yes today a bulb went on my Simply Red (headlight) That is the first thing to happen in 3 years ...Not bad eh
Have a nice weekend and enjoy your Curry .I will be enjoying My German Sausages but would rather have a curry !!!!(a real one)

Below is my Twitter Conversation with Mr. Anand Mahindra

saumiltweets: do u
stand by Economic Times article today?M&M ending MRPL ties?

Anand Mahindra:-
Hopeful it won't b long before we make an official statement

@mahsel - Whatever happens, Renault is already in India, have their HO in Chennai and Mumbai. Also a Design studio in Mumbai. Setting up their own dealer network.
Heres a statement by Mr. Ghoshn that should settle the debate,

Carlos Ghosn, CEO of the company, had said: “It is mutually
agreed by both the partners that the market response to the Logan has
been below expectations. There are discussions at this point for the
repositioning and further simplification of the car. As soon as these
discussions reach a conclusion, they will be announced. Until
then, the Logan will stay on roads and will continue its regular life
cycle in the country.”

But these are all just statements. We are already hearing stories of parts not arriving at the service center for several months right?

Do you think things will improve after Renault completely takes over?

Thanks Samuel!!

Your words had a positve flavour and I belive that we all will not undego any hassels due to the changes Renualt is planning.

Cheers,
MSM

Saumil it is :-)

Renault S.A. and India’s Mahindra & Mahindra Ltd. have agreed to restructure their joint venture and may reduce the size of the car they make to be eligible for lower tax rates, a senior executive at the French auto maker’s local unit said Monday.

Full Article - http://clublogan.com/mahindra-and-renault-restructuring-mrpl-jv/

Source - The Wall street Journal and Fox Business

March 30th, 2010 under Auto News.

The Logan issue is getting a soft pedaling with JV between Renault and M&M is forging ahead to alter the petrol engine. The move comes in the wake of availing the excise relief offered by the government of India. However, the current diesel engine would likely to be continued. If the tussle is cleared then the issues related to the design and the cost of the car would be sorted out. Sources close to M&M indicate that the company is not much bothered about the car deal but it is concerned with the 30000 owners of Logan.

The JV could sell 500 units of Logan a month against 20000 units of utility vehicles. M&M wants to boss over with issues like engineering decision which Renault is hesitant to shed off. The JV between these two companies are restricted to Logan only and the initial sale from 2007 (2000 units a month) has come down to the current 500 units. The net sales during the period of April – February 2010 was 4981 units, a dip of 60%. The dealers are in a delicate situation over the dispute with these two companies

Source: Vicky.in/IAB