Magneti Marelli, Suzuki Motor Corporation, Japan and Maruti Suzuki India enter into a joint venture
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      Magneti Marelli, Suzuki Motor Corporation, Japan and Maruti Suzuki India enter into a joint venture

      Oct 19, 2007
        Magneti Marelli, Suzuki Motor Corporation, Japan and Maruti Suzuki India enter into a joint venture

      To manufacture electronic control units of the diesel engine

      New Delhi, October 11, 2007

      Magneti Marelli, Suzuki Motor Corporation and Maruti Suzuki India Limited have signed an agreement for the creation of a joint venture in India, aimed at the production of electronic control units (ECU) for diesel engines.

      According to the agreement, Magneti Marelli will contribute 51% of the share capital of the new company, Suzuki, 30% and Maruti, 19%.

      The initial investment is expected to total approximately Euro 15 million (about Rs 750 million)

      The project will be funded through a mix of equity and debt.

      The industrial facilities of this joint venture company will be located in Manesar, in the industrial district of Gurgaon, approximately 40 km southwest of New Delhi.

      It will be part of the Supplier's Park spread over 100 acres, being set up by Maruti Suzuki at its campus in Manesar.

      The start of production is scheduled for the end of 2008 (calendar year). As part of the objectives, the production of this plant should reach a total of about 500,000 control units per year, when working at full stretch.

      The electronic control units produced in Manesar will be initially used for Maruti Suzuki diesel cars and, later on, will also cater to other car manufacturers.

      According to Mr Eugenio Razelli, CEO of Magneti Marelli, "The joint venture with Suzuki and Maruti significantly strengthens an important partnership already in existence, giving the car-maker the possibility to rely on competitive systems featuring cutting-edge technology and the components maker the chance to increase its presence in a strategic and fast-growing market".

      Magneti Marelli, part of Fiat Group, designs and produces high-tech components and systems for motor vehicles. With its 45 production facilities (55 production units), 9 R&D centres and 27 application centres in 16 countries, 25,000 employees and total turnover of 4.5 billion Euros in 2006, the group is a supplier to all the major car-makers in Europe, North and South America and the Far East. The business areas include: Powertrain – Suspension systems and Shock absorbers - Lighting – Electronic systems – Exhaust systems – Aftermarket Parts & Services - Motorsport.

      Suzuki Motor Corporation, with headquarters in Hamamatsu, Shizuoka, Japan is the leading international manufacturer of compact cars. The Company employs some 45,510 people worldwide. And it is represented in over 192 countries and areas. Its net sales have been exceeding the previous terms for the 8th consecutive year and its operating income for 7th consecutive year, and in the fiscal 2006/2007 the turnover reached about 3,163 billion yen with an increase of 15.2 percent over the previous year. The worldwide sales cover among other things 2.22 million automobiles and 3.06 million motorcycles. Suzuki has 35 main production facilities in 23 countries.

      Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is the leader in passenger cars and MPVs in India, accounting for almost 55 per cent of total industry sales. It supports customers through a network of 521 sales outlets across 335 towns and cities, and a service network of over 2450 workshops across 1184 towns and cities. It offers 11 models, ranging from the people's car Maruti 800 to the stylish hatch-back Swift, SX4 Sedan and luxury SUV Grand Vitara. The company has been rated first in Customer Satisfaction for seven years in a row in J D Power Surveys of Indian automobile industry. Listed on the Bombay Stock Exchange and National Stock Exchange, the company had a net sales turnover of US $ 3.25bn and net profit of $347 million ($ = Rs 45) in 2006-07.