Daimler finds a Hero
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FOLLOWING VOLVO'S joint venture with Eicher Motors, Daimler Trucks has signed a deal with the Indian manufacturer Hero Group.
A joint venture for the production of what Daimler calls localised variants of Daimler Truck's current portfolio" is to be established.
Production of the Actros is expected to remain with DairnierChrysler India Pvt, Daimler's wholly owned Indian subsidiary; no decision has been made on the production of Fuse-badged models.
A Daimler spokesman says the detailed management structure will not be revealed until the early months of 2008, but the German firm will have a majority stake. This issue has affected negotiations with Ashok Leyland and Eicher, with which Daimler had held detailed, though ultimately fruitless, discussions.
The choice of Hero Group, better known as a manufacturer of motorcycles can probably be attributed to the fact that no other Indian automotive player was open to a joint venture. AB Volvo's deal with Eicher Means that, with the exception of AMW, the entire Indian truck industry is now allied in some way with either European or, in the case of Mah indra, US companies.