Date:12/04/2006 URL: http://www.thehindubusinessline.com/2006/04/12/stories/2006041202150200.htm

Back MAN freezes investment in China

Sudha Menon

MAN Nutzfahrzeuge has put the brakes on its Chinese investments after it encountered roadblocks in the form of product infringements for which it found no legal redressal.

The company has a joint venture for buses and two licences with local partners for cabs and an older generation truck but will not pump in further investments to grow operations in China, said Mr Anton Weinmann, Chairman of the Executive Board. "Doing business with India is easy since the business culture here is much more transparent," he said.

"Our China venture was meant to grow in parallel with the Indian joint venture but we have now decided to go slow in China because doing business there is dependent on political decisions and we found no legal grievance redressal for infringement on our products," said Dr Karl Viktor Schaller, Senior Vice-President and Member of the Board of Business Unit, Heavy Trucks.

"We took a decision last week not to license our D28 engines to the China National Heavy Truck Corporation which had approached us for a full range of engines," Dr Schaller said. "Our joint venture for buses is not doing too well and we shall not make any further investments in the market," he said. The company's investments in the China market are an estimated 10-12 euros million till date.