| Mahindras mum on future of joint venture with Renault | |
| Press Trust of India / New Delhi October 22, 2009, 18:44 IST | |
Mahindra & Mahindra is keeping silence over the future of its joint venture with Renault, which has been put into question with the French auto firm saying it can severe ties and may even drive in its new product into India with a different partner.
"No comment," a Mahindra & Mahindra spokesperson said when asked about the group's views on the statements made by Renault President and CEO Carlos Ghosn in Tokyo yesterday regarding their joint-venture -- Mahindra Renault.
Ghosn had said although Renault's intention was to continue in India with its three different partners (M&M, Bajaj Auto and Ashok Leyland), it can severe ties if things didn't work out.
"I am not saying we will, I am saying we can. I don't want anybody to be surprised," he said.
M&M is the majority shareholder with 51 per cent stake in the JV, which manufactures entry level sedan Logan. Declining sales had put a question mark over the future of the JV.
Ghosn said: "We are going to try sometime, if it does not work we will go for second time with a decent car and eventually with a different partner, does not matter. We are in India to stay."
Analysts pointed out that with Logan selling way below expected levels, the capacity utilisation is hardly upto 25 per cent, which makes it difficult for the joint venture to be profitable.
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