By IANS
Mumbai : Top carmaker Maruti Udyog Thursday said that it would form a joint venture with Italy-based global leader in automobile designs and high-tech components system maker Magneti Marelli and Japan’s Suzuki Motor Corp.
The joint venture would produce hi-tech electronic control units (ECUs) for Maruti’s diesel engine cars. There will be an initial investment of Rs.750 million.
According to the agreement, Magneti Marelli, which is the world’s major supplier of auto components, will contribute 51 percent of the share in the new company. Suzuki will hold 30 percent and Maruti the remaining 19 percent.
The project would be funded through a mix of equity and debt, the company said in a statement.
The industrial facilities of this joint venture company will be located in Manesar in the district of Gurgaon, some 40 km southwest of New Delhi.
It will be part of the Suppliers’ Park spread over 100 acres, being set up by Maruti Suzuki at its campus in Manesar, the company said.
The start of production is scheduled for the end of 2008. The production will reach about 500,000 control units per year when the plant will work 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.