Monday, January 7, 2008

Daimler to buy 26% in Sutlej Motors

Daimler AG of Germany has taken a call option to buy 26 per cent in Jalandhar-based bus body builder Sutlej Motors.The proposal was recently cleared by the Foreign Investment Promotion Board (FIPB).

The Indian company had signed an agreement with Daimler last year to jointly make fully-built buses from Daimler’s Chakan facility based in Pune.Under the agreement, Daimler will produce and supply bus chassis and Sutlej Motors will attach the body.

Daimler India, which is a 100 per cent subsidiary of Daimler AG, will also handle sales and after-sales services of the coaches, which are expected to be launched in India in the first quarter of 2008.

No comments: