Delhi-based Argentum Motors has acquired a 60% stake in French automaker, Heuliez, at an investment of 25 million euros. French company re-organization board, Caisse des Depots et Consignations (CDC) will also be investing five million euros in Heuliez, which had been facing financial problems for some time.
Argentum Motors had, some time back, taken over the now-defunct Daewoo Motors plant in Surajpur, near Delhi, in order to kick off its contract manufacturing business. After being taken over by Argentum, Heuliez, one of the largest customized car manufacturers in Europe, will undergo extensive restructuring and will be divided into three separate entities.
Heuliez Electric will build electric vehicles under the ‘Heuliez’ brand, while Heuliez Engineering & Design will work closely with Argentum Engineering & Design and work towards becoming a global automotive design company. Finally, Heuliez Manufacturing will utilize its manufacturing facilities in India and Europe to make customized cars and auto components.
‘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,’ said Ajay Singh, Chairman, Argentum Motors.
Heuliez is expected to showcase a new, battery-powered mini commercial vehicle at the upcoming Paris Motor Show in September this year. This electric CV is likely to be launched in Europe by mid-2009. Argentum and Heuliez are also likely to develop other electric cars and pickups for the European market, which might also make their way to India by 2010-11.
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