Having broken up with its long term better half and technology provider Honda, Hero MotoCorp, recently announced that it will form a 60:40 joint venture with the 5.8 billion Euro turnover Italian company Magneti Marelli to produce powertrain systems for its two-wheelers. For the uninitiated, Magneti Marelli designs and produces advanced systems and components for major automotive players all around the globe. The partners will invest a total amount of USD 27 million in the JV over the next ten years and expect sales of USD 200 million in the same period.
The production facility will come into being by the latter half of 2015. Location for this plant will be identified in the coming days. However, the joint venture will start working with immediate effect and will work towards ensuring synergy between the two companies. During this time, the two companies will co-operate for the design and development of the first solutions and applications for motorcycles.
As penultimate goal of this venture, Hero MotoCorp is looking to equip its future bikes with advanced Powertrain solutions after which not just the drivability but also the environmental sensitivity of the bikes will improvement. For the time being, only two models from Hero MotoCorp–ZMR and Glamour 125 cc, have advanced fuel injection systems. To make sure that the products are emphatic on the design side as well, Hero has also brought in Italian two-wheeler design firm ‘Engines Engineering’ to conceptualize the next generation product line up.
This joint venture also re-emphasizes Hero Moto Corp’s attempts towards looking out for technology solutions since it separated ways with its Japanese partner. The new firm will be up to the task of development and manufacturing of next-generation fuelling systems. Apart from Magneti Marelli, Hero MotoCorp also has ties with US based Erik Buell Racing (EBR) and Austria’s AVL for ramping up its R&D facilities.