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06-13-2012, 12:55 AM #1
Suzuki Powertrain to merge with MarutiTo prepare itself to meet increasing demand for diesel vehicles, Maruti Suzuki India, on Tuesday, said it would merge engine and transmission maker Suzuki Powertrain with itself.
Subsequent to this merger, Japanese parent Suzuki Motor Corporation's (SMC) stake in Maruti Suzuki India (MSI) will go up to 56.2 per cent from 54.2 per cent due to a share swap agreement with the domestic car market leader to acquire Suzuki Powertrain India Ltd (SPIL).
SMC holds a 70 per cent stake in its subsidiary SPIL, while the balance is held by MSI.
“The merger promises multiple benefits, specially when we consider the increasing dieselisation of the Indian car market. With this, Maruti Suzuki will be able to bring all its diesel engine operations under a single management,” MSI Managing Director and CEO S. Nakanishi told reporters here.
This would help in bringing down costs and also providing more flexibility while meeting fluctuations in market demand, he added.
“With the SPIL facility, now being added to MSI, we can have a cohesive diesel strategy as it will provide synergies in finance and capital,” Mr. Nakanishi said....being a human...