Maruti Suzuki India merges with Suzuki Powertrain

Maruti Suzuki India Limited announced that it will merge with Suzuki Powertrain, the engine and transmission-making venture it jointly owns with Japan’s Suzuki Motor Corp.
Maruti said the merger will bring its entire diesel engine capacity under the control of one management unit. Suzuki Motor has a 70% stake in the company, while Maruti holds the remaining 30%. Using Fiat SpA’s technology, Suzuki Powertrain produces 300,000 diesel engines annually. The merger entitles Suzuki Motor to one share of Maruti for every 70 shares it owns in Suzuki Powertrain
The company said it expects to get regulatory approval for the merger by December this year and that there are no plans to reduce the number of jobs.
Maruti recently announced it plans to invest Rs 4,000 crore (US$713 million) for the construction of a diesel engine factory in Gujarat which will be operational by 2015-16, with an initial annual capacity of 250,000 units. The new facility’s capacity will be gradually scaled up based on domestic demand and export commitments. The recent increase in the demand for diesel vehicles in India has prompted Maruti to invest in diesel engines. (June 13, 2012)