Tata Motors, DaimlerChrysler part ways

July 18, 2007

The Tata Motors - DaimlerChrysler collaboration is coming to an end after a period of fifty years. In 1954, Tata Motors had entered into a partnership with German auto maker Daimler Benz to acquire the Benz know-how for trucks. The Tatas built many trucks with the Benz logo displayed.

Tata Motors slowly built its competency in manufacturing trucks and grew to become the world's fifth largest commercial vehicle maker, with the help of its association with Daimler. Auto industry sources say that now Tata Motors and DaimlerChrysler are headed for separate ways.

A financial daily has reported that DaimlerChrysler is set to get a no-objection certificate from Tata Motors so that it can launch its own trucks in the country. This could also mean that the world's third largest automobile giant would cut its last link with the Mumbai-based Tata Motors and is looking to sell its 6.8 per cent stake in the company.

It is believed that DaimlerChrysler plans not only to import complete Mercedes-Benz trucks (Actros) to India but to also assemble semi-knocked down trucks in future. Recently, DaimlerChrysler had started scouting for a new factory premise after its lease with Tata Motors lapsed. The Tatas offered them land adjoining their Pune factory and allowed DaimlerChrysler to use its paint shop facility for Mercedes Benz cars.

The Tatas' soft corner for the German company is a known fact. Group boss Ratan Tata had even asked for help from DaimlerChrysler to design his small car just as DaimlerChrysler helped Korean company SsangYong make the luxury sedan model Chairman. Daimler did not help as they wanted to focus on localizing their own models for India, it has been reported.