NEW DELHI: Eicher Motors on Thursday explained it has signed a definitive settlement for the integration of Volvo Buses India enterprise into VE Commercial Motor vehicles (VECV).
VECV is an Eicher Motors’ arm that addresses the Eicher’s business vehicles, factors and engineering design and style organizations as nicely as the sales and distribution of Volvo trucks.
The integration would cover manufacture, assembly, distribution, and sale of the Volvo Buses in India, and other rights forming part of the small business, the firm said in a statement.
The closing enterprise transfer is expected to be closed within the following two months.
The inventory, which was up in the morning trade, fell 1 for each cent to Rs 21,874 in afternoon trade forward of its quarter earnings.
Less than the settlement, Volvo’s bus manufacturing facility at Hosakote, Bengaluru, and all of its workers will be transferred to VECV. Volvo Bus India is a division of Volvo Team India.
Chairman Siddhartha Lal, VECV claimed, “Post the completion of the transaction, VECV and VBI will consolidate their bus organizations into a recently shaped bus division in just VECV. This division will offer Volvo and Eicher branded buses, and will maximise synergies to capitalise on market chances. This strategy will be prolonged to exports, wherein the new bus division will offer items and solutions that are complementary with Volvo Buses’ main products portfolio in select international markets.
The new bus division will offer a full range of contemporary buses covering shopper wants for weighty, medium and light-weight obligation buses, claimed Håkan Agnevall, President of Volvo Bus Corporation.
Handling Director and CEO Vinod Aggarwal at VECV said that integration will help VECV to leverage synergies in the areas of solution advancement, buying and producing with access to Volvo Group’s technology in buses.
Akash Passey, Senior Vice President at Volvo Bus Company will be part of as President of the newly shaped VECV bus division. He will repatriate to India for this purpose and report to Aggarwal.