Force Motors to buy Pithampur plant of VW Group's MAN Trucks

Pune-based Force Motors is to acquire the Pithampur (Madhya Pradesh) manufacturing plant of MAN Trucks, a Volkswagen group company, for an undisclosed amount.

In a BSE filing, Force Motors said the company’s board has approved the acquisition and it is expected to be completed by the end of October.

As a part of the agreement, MAN Trucks India’s existing employees will retain their jobs as Force Motors employees.

Munich-based MAN Truck & Bus, earlier this month, had decided to exit the Indian market to focus on premium segments of the global market, putting its assets including the plant up for sale.

Last month, the German company said it would be putting on hold its ongoing projects, including new product launches and upgradation of models in the country, to comply with the BS VI emission norms which come into effect on April 1, 2020.

At its Pithampur plant, MAN Trucks manufactured products such as tippers for off-road and construction, haulage for regular and over dimensional cargo, and special application trucks such as fire tenders, garbage compactors, concrete mixers, boom pumps, tip trailers and bulkers.

HBL