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Mitsubushi ends alliance with M&M, fate of tie-up for Voyager unknown

Mitsubishi Motors Corporation of Japan today announced that it has rejected all partnership proposals with Mahindra & Mahindra, leaving its existing tie-up for producing Voyager vans in India hanging mid-air.

In a statement issued in New Delhi, Mitsubishi first stated that all proposals from M&M have been outright rejected. But later, the company, in the same statement, stated that all proposals with M&M have been put in cold storage. However, the statement was silent on the fate of its existing tie-up for Voyager, which was termed as a failure.

Meanwhile, though Hindustan Motors has dropped plans of offering ten per cent equity to Mitsubishi, the Japanese auto major still maintains that the option would be exercised in future.

The C K Birla-promoted Hindustan Motors has got the Foreign Investment Promotion Board approval to withdraw a clause in its foreign collaboration agreement which permits Mitsubishi to pick up a ten per cent equity in the domestic car manufacturer.

UNI

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