NEW DELHI: Delhi-based automobile company Argentum Motors, which has taken over the erstwhile Daewoo Motors plant in Surajpur (UP) to start contract manufacturing business in India, has announced the acquisition of French automaker Heuliez SA with an investment of e25 million for an initial 60% stake.
Besides Argentum�s investment, French company re-organisation board Caisse des D�ts et Consignations (CDC) has also committed an investment of e5 million for the troubled Heuliez, which had been facing financial problems. Argentum Motors signed definitive documents for the acquisition on Wednesday in France.
Heuliez is one of the largest customised car makers�particularly convertibles and station wagons�for several global car companies like Peugeot, Renault, Citroen, General Motors and Daimler-Benz. Post acquisition, it will be spun off into three companies as part of the restructuring plan.
Heuliez Electric will build electric vehicles under the �Heuliez� brand. Heuliez Engineering & Design will work closely with Argentum Engineering & Design to emerge as a global automotive design company. Meanwhile, Heuliez Manufacturing will utilise its facilities in Cerizay, India, Spain and Slovakia to build cars and automotive components for the global market. It will also manufacture the e-vehicle range for sale in Europe.
Argentum plans to leverage Heuliez�s patented retractable hardtop car technology and its electric vehicle manufacturing capability. The latter will also provide distribution support to Argentum products in Europe and other developed markets.
Argentum Motor chairman Ajay Singh said: �We are looking at utilising Heuliez�s strong distribution platform and leverage its design business to build a global automotive design company. We will also tap the fast-growing electric-vehicles market, and launch new products in the global market.�
The company is expected to showcase a new product from the Heuliez portfolio at the Paris Motor Show in September. According to Argentum sources, this will be an electric micro commercial vehicle which will be formally launched in Europe in April 2009, badged as a Heuliez vehicle.
Argentum will also look at developing electric four-seater vehicles and pick-ups as well mostly for the European market. There are no plans to bring these to India for now. In order to bolster its electric-vehicle technology, Heuliez may look at tie-ups on the technical front as well, say sources.
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