M&M's acquisition of Reva leads to GM pulling out of tie up
27 May 2010
American car maker General Motors (GM) is expected to pull out of its technological partnership with Reva Electric Car Company, as domestic auto major Mahindra & Mahindra Ltd acquired 55.2 per cent equity in the Bangalore-based company to make an entry into the electric vehicle market in India.
GM, under an agreement with Reva last September was to jointly develop and produce electric vehicles in India. The first electric vehicle was expected to be in the market later this year (See: GM ties up with Reva for electric car production)
American car maker General Motors (GM) is expected to pull out of its technological partnership with Reva Electric Car Company, as domestic auto major Mahindra & Mahindra Ltd acquired 55.2 per cent equity in the Bangalore-based company to make an entry into the electric vehicle market in India.
GM, under an agreement with Reva last September was to jointly develop and produce electric vehicles in India. The first electric vehicle was expected to be in the market later this year (See: GM ties up with Reva for electric car production)
Within hours of Mahindra announcing acquisition of a majority stake in India's most recognisable electric car brand, GM indicated it would now go at it alone (See: M&M acquires controlling stake in Reva).
GM vice-president P Balendran, who was in China, was quoted as saying that the company may not continue with the Spark EV (electric vehicle) programme with Reva in the light of the development and would pursue its own electric vehicle programme.
