Mumbai: Tata Motors marked the start of a new chapter on Tuesday, taking the stage in Turin with Iveco Group to present what the two companies call a global commercial mobility enterprise. The combine ranks fourth among commercial vehicle manufacturers in the world and operates in more than 130 countries.
"Today marks the beginning of an exciting new chapter for Tata Motors and Iveco Group," said N. Chandrasekaran, chairman of Tata Sons, Tata Motors and Iveco Group. "Two strong and successful organisations, united by shared values, a common commitment to sustainable mobility and an ambition to shape the future of commercial transportation, have come together." He said the group would invest for the long term and let capabilities flow both ways.
By the company's own numbers, combined revenues are about 21 billion euros, or more than Rs 2.28 lakh crore, on sales volumes of roughly 5.9 lakh units. The network runs across 27 manufacturing sites, 25 R&D centres and about 9,300 sales and service outlets, with more than 73,000 employees on six continents.
Turin stays. "The Iveco Group's headquarters were in Turin and will remain in Turin. I have no doubts about the group's future," Chandrasekaran said. Iveco's brands, teams and industrial footprint will retain their distinct identities, the company said, and Tata Motors will back Iveco's existing strategy and investment plans.
Girish Wagh, managing director and chief executive officer of Tata Motors, said the two businesses together had an extraordinary opportunity to create greater value for customers and shareholders.
Iveco's new six-member board has Chandrasekaran as chairperson and senior non-executive director, Olof Persson as executive director and chief executive, P.B. Balaji and Girish Wagh as non-independent directors, and Guenter Butschek and Charles Nichols as independent directors. Damiano Cretarola took over as chief financial officer on 2 November.
Tata Motors holds about 89.42 per cent of Iveco's common share capital, or 238,157,212 shares, bought at 14.40 euros apiece in a deal valued at roughly $4.32 billion, or Rs 42,561 crore. Shareholders who have not yet tendered can still do so between 2 and 6 November, with settlement of those shares on 13 November.
Existing customer contracts, dealer and supplier relationships, warranties and aftermarket commitments continue unchanged, the company said.