Iveco plans on hold in India

The agreement between Iveco and Tata Motors from India to jointly develop a range of trucks has been put on hold. Following an agreement signed back in 2007, the two companies planned to work together to develop trucks and integrate their distribution systems. Iveco’s traditional strength as a global brand and Tata’s strength in Asia and the developing countries were seen to be complementary.

“The Memorandum of Understanding considered exploring the potential for cooperation between the two companies in India and throughout the world,” said a statement by an Iveco spokesman quoted in the Business Standard of India. “By the end of 2007, it was clear that there was little scope for cooperation.”

The planned cooperation in the South American truck markets may go ahead after the two companies agreed to use Iveco’s strength in the South American market and its manufacturing capability in Brazil to market some Tata product there.

“It is South America that shows the greatest possible level of cooperation,” said the Iveco spokesman talking to the Business Standard. “Investigations into possible cooperation and collaboration is currently ongoing.”

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