Daimler AG has signed an agreement with India’s Hero Group to establish Daimler Hero Motor Corporation Ltd., a commercial vehicle joint venture, to produce light-, medium- and heavy-duty commercial vehicles for the Indian market.
Daimler Hero is currently looking for a production location, with the goal to start manufacturing commercial vehicles in 2010 with a localization rate of up to 80% to utilize cost advantages. The two companies will invest €360 million—about $573 million--into the venture over the next five years.
Marc Llistosella, who directed the venture project for Daimler, will be CEO of Daimler Hero Motor Corp. Amit Chaturvedi, currently president of strategy & business development at Hero Corporate Service Ltd. will be co-CEO and Sunil Kant Munjal will be chairman of the board of directors.
