Mahindra's Peugeot Plans, not to cut any jobs!!!

Mahindra's Peugeot Plans, not to cut any jobs!!!

Snapshot: Peugeot Scooters will remain in France and there will be no job cuts!!!

Mahindra's two-wheel adventure in India continues, from taking over Kinetic business of scooters to getting in home grown motorcycles, to a spectacular effort in Moto 3 world championship. However, only the fairly new Centuro has been able to only slightly show the capability of Mahindra in the two-wheeler  market.

Thus, it came as a surprise when we learned about Mahindra's interest in the ailing scooter business of the French manufacturer Peugeot. a 13 million Euro deal, may seem a bit rather eccentric, even by Mahindra’s records, but the company might just pull out a bumper gift hamper, just like the Tata-JLR deal.

While Mahindra had so far been selling rebadged Kinetic scooters, it has now finally managed to take out its first completely indigenous automatic scooter, the Gusto. This new deal will certainly help Mahindra’s technical prowess in their R&D.

As per a report on Business Standard, the two companies will be working on four key areas:

  • Product Development: This would most probably be the single most important sector in which Mahindra can learn loads from Peugeot thanks to their technological prowess.
  • Global Expansion: Being a team, it only makes sense to grow together. With sales dropping in the parent countries of both the companies, entry into more lucrative and greener pastures makes complete sense.
  • Mergers and acquisition: No surprises here also, as it seems that the companies will use each other’s shoulders to climb new heights
  • Brand Building: Last but not the least, both the companies need this the most and a healthy image boost will do wonders.

Even though Mahindra has bought a 51 per cent majority controlling stake, they would not be meddling in their affairs directly and just like SsangYong, even Peugeot Scooters will also be run independently. The Indian manufacturer has even declared that the Peugeot will remain in France and there will be no shifting of production to cheaper countries, thus protecting the jobs of nearly 800 employees of Peugeot. In fact the company has guaranteed that there will be no job cuts for at least the next two years.

Mahindra's two-wheel adventure in India continues, from taking over Kinetic business of scooters to getting in home grown motorcycles, to a spectacular effort in Moto 3 world championship. However, only the fairly new Centuro has been able to only slightly show the capability of Mahindra in the two-wheeler  market.

Thus, it came as a surprise when we learned about Mahindra's interest in the ailing scooter business of the French manufacturer Peugeot. a 13 million Euro deal, may seem a bit rather eccentric, even by Mahindra’s records, but the company might just pull out a bumper gift hamper, just like the Tata-JLR deal.

While Mahindra had so far been selling rebadged Kinetic scooters, it has now finally managed to take out its first completely indigenous automatic scooter, the Gusto. This new deal will certainly help Mahindra’s technical prowess in their R&D.

As per a report on Business Standard, the two companies will be working on four key areas:

  • Product Development: This would most probably be the single most important sector in which Mahindra can learn loads from Peugeot thanks to their technological prowess.
  • Global Expansion: Being a team, it only makes sense to grow together. With sales dropping in the parent countries of both the companies, entry into more lucrative and greener pastures makes complete sense.
  • Mergers and acquisition: No surprises here also, as it seems that the companies will use each other’s shoulders to climb new heights
  • Brand Building: Last but not the least, both the companies need this the most and a healthy image boost will do wonders.

Even though Mahindra has bought a 51 per cent majority controlling stake, they would not be meddling in their affairs directly and just like SsangYong, even Peugeot Scooters will also be run independently. The Indian manufacturer has even declared that the Peugeot will remain in France and there will be no shifting of production to cheaper countries, thus protecting the jobs of nearly 800 employees of Peugeot. In fact the company has guaranteed that there will be no job cuts for at least the next two years.

 

on 2014-10-29 01:04:58

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