Force Motors, Rolls-Royce in talks for engine JV

Pune-based automaker Force Motors on Tuesday signed a non-binding term sheet with Rolls-Royce Power Systems to form a joint venture (JV) to produce engines. 

According to a Force Motors release, the JV will make engines for use in the railway segment and power generation; it will also make complete power generation systems. The JV will sell its products in both the domestic and foreign markets. 

Force Motors plans to build a dedicated facility at its existing Chakan plant in Maharashtra to build these engines, the release said. But, the company did not disclose the quantum of investment, nor the shareholding of the two partners. 

Force Motors is the only company which manufactures engines for both German rivals — BMW and Mercedes Benz.

In July 2015, when it bagged BMW’s order, the company had set up a plant in Chennai, with an investment of Rs 200 crore and production capacity of 20,000 units annually. It produces diesel engines for seven BMW models: The 3 Series, 5 Series and 7 Series sedans; X1, X3 and X5 sports utility vehicles (SUVs) and the 3 Series GT coupe sedan.  

The company also invested Rs 100 crore at its Chakan plant to produce axles for Daimler AG. The plant can build 20,000 engines and 20,000 front and rear axles for Mercedes Benz. Since 1997, Force Motors has been supplying engines to Mercedes Benz for both its sedans and SUVs.

The company’s shares closed 3.3 per cent higher at Rs 4,223.85 on the BSE.