Hero and Honda part ways; company and brand name to be changed overtime.
BestMediaInfo Bureau | Delhi | December 17, 2010
Hero Honda Motors Ltd. (HHML) – the world’s single largest two-wheeler manufacturer – is taking a new ride. The Hero Group of India and Honda Motors Co, Japan have agreed to restructure their respective equity positions in Hero Honda - as a part of which, Hero Group will buy the entire 26% of Honda’s stake in Hero Honda. It will be business-as-usual for the time being at Hero Honda and there will be no change in ground operations in the immediate future. The two companies have also put in place processes and means of support to ensure a gradual and smooth transition.
It has been decided that all the existing products of Hero Honda will continue and there will not be any change across on-going operations. Both the companies have finalized the process for smooth transition which will see the company and brand name change overtime.
Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd. said, “We set up Hero Honda more than 25 years ago with the vision of providing easy mobility to millions of people. In all these years, contribution of our technology partners - Honda Motor Co. has been immense in realizing that dream. I would like to take this opportunity to thank our partners Honda Motor profusely for their unstinted support over the years. The new arrangement will have no impact on our long standing and deep relationship and bond. My best wishes are also with our employees, ancillaries, suppliers, dealers and other business partners who are a major source of strength for the company. Today is a new beginning – to broaden our horizons and to pursue our new dreams with the blessings of Almighty.”
Fumihiko Ike, Honda’s Managing Director and Chief Operating Officer for Regional Operations (Asia and Oceania), said “We would like to extend our sincere gratitude to our Partners who made possible Hero Honda’s growth to date. Our joint venture agreement will be dissolved, but our positive relationship will continue. And in order to assure service to the customers, Honda will grant the necessary license to enable continued production and sales of current products as well as a license for new products. I would like to take this opportunity to express our sincere gratitude to the Indian government and related authorities, the customers and all our stakeholders who have supported Hero Honda’s growth to date. Honda wishes for the success of Hero Group. And Honda will continue exerting our efforts for our customers in India and for further development of the Indian market.”
Pawan Munjal, MD & CEO, HHML, said “For all these years, Hero Honda has stood for a commitment to enduring values, a deep and rewarding relationship with its stakeholders, a willingness to blaze trails and to envision and engineer the future. Now, with this new arrangement, we are set to charter new segments and geographies and develop new products. Enabling yet another contribution to the Brand India story! This marks the beginning of a revitalised journey of growth for the company and its people and business associates. With our pool of talented people, powerful established brands, financial stability, extensive distribution network, committed supplier base and strong business associates, we are well-poised to embark upon a new exciting journey. And in this journey, the interests of our employees, customers, business partners, shareholders and all other stakeholders will continue to be of paramount importance to us.”
This new arrangement enables Hero Honda to strengthen its leadership in India, bolster R&D capabilities, explore new product categories, enter large and emerging export markets and build a global presence.