Joint Venture (JV) is the term given to a collaborative agreement wherein two or more automotive companies share their business. By sharing the business, we here mean sharing, the cost, management, and also profits for a common objective (Depending upon the agreement).
In the automotive market, a JV usually is about the collaboration of an international brand with an automotive company in the country’s domestic market. Nevertheless, through a JV, carmakers can also sell their cars worldwide. But this depends upon the contract those 2 or more companies agree to.
That said, where the Joint Ventures can do good to the company these JVs can go south as well. So, here are 8 JVs that didn’t see the daylight for long.
Ford – Mahindra
The recent example of JVs not even seeing single daylight is the Ford and Mahindra. It was 1st October 2019 when Mahindra and Ford signed an agreement to sustain business in the country.
In the agreement, Mahindra had a 51% controlling stake, and the other 49% was owned by Ford. But then things took a negative dive. One of the prime season for the JV to end was the global economic conditions due to the pandemic. Hence the JV broke before even starting an operation.
Suzuki – TVS
Talking about the Suzuki and TVS collaboration we have to travel back, back to 1984. This is when both the companies came together for the production of commuter (100cc) motorcycles. Also, at the same time, a new name for that company was born (Ind-Suzuki).
This JV lasted for about 17 years and in 2001 both the companies parted ways. The known reason for this joint venture to end was the growing tension between the two companies.
Yamaha – Escorts
The Yamaha and Escorts JV first came on papers in 1985. The collaboration was a technical support agreement and was to start the local production of the Yamaha motorcycles in India.
Later, according to some reports, Yamaha and Escorts set up another deal in 1995 wherein both the companies invested 50% capital in the venture. After that in the 2001 Escorts exited the JV and Yamaha took the 100% of the market share.
LML – Piaggio
Again, to get to know the story we are heading back to 1984, where LML and Piaggio joined their hands for the production of Vespa scooters. Then in the year 1990, this JV converted from licensing agreement to a technical and financial joint venture. In the end, in the late 1990s, LML bought back its partner shares ending the collaboration.
Mahindra – Renault
It was 2005 when Mahindra and Mahindra went into collaboration with the French carmaker Renault. In the JV 51% share was owned by M&M and Renault settled with 49% share.
In 2007 they launched their first vehicle after collaboration, the Logan. Because of really low sales of the vehicle, the JV dissolved in April 2010. Both the companies are on their own since.
Nissan – Ashok Leyland
2008 was the year when Nissan and Ashok Leyland formed not one but 3 JVs in different fields. Diving a little deep, after the collaboration Ashok Leyland Nissan Vehicles Ltd. Nissan Ashok Leyland Powertrain Ltd and Nissan Ashok Leyland Technologies Ltd were formed. But over the years the tension between the two companies took over and in 2016 both ended the venture together.
Hero – BMW
Around the year 2003, it was proposed that BMW could enter in a joint venture with the renowned two-wheeler manufacturer Hero Moto Corp. (Hero-Honda back then). Also, let me get the facts right. The collaboration was for luxury cars and not two-wheelers. But as the years passed, due to the recession in the automobile industry the proposal of collaboration between the two companies was shelved.
Garware Motors – Hyosung
First Kinetic and then Garware, Hyosung did collaborate with both the companies on the India soil. That said, the second collaboration for the Chinese brand Hyosung was with a Pune based company Garware. From 2008, Garware motors manufactured motorcycles for Hyosung. But the collaboration came to an end when DSK Motowheels’ the parent company filed for bankruptcy.