June 28, 2005 | Business Standard
Visteon, Taco set up 2 JVsVisteon Corporation, one of the largest automotivecomponents and systems suppliers in the world, has set up two 50:50 joint venture companies with Tata AutoComp Systems (Taco), both based in Pune. Taco Visteon Automotive Products (TVAP) will manufacture lighting systems, powertrain components and air induction systems, while Taco Visteon Engineering (TVEC) will provide CAD, CAE and allied engineering services for Visteon's global operations. TVAP's focus will be on servicing automotive manufactrers in India, while Visteon US and Europe are expected to be TVEC's key customers.
TVEC will also support TVAP's manufacturing operations in Pune. Visteon is initially investing $12.5 million in the venture, to be followed by further investments later. Robert Pallash, vice-president, Asia Pacific operations, Visteon, said tying up with Taco gave it a shortcut route to an aggressive ramping up of their growth in the region. Pallash also mentioned that since they have a healthy headstart in terms of products, technology and price, they expected to be favoured with business from original equipment manufacturers.
"We have had a great relationship with Taco and our executives have also been working with them. In these joint ventures, we will benefit from Taco's supplier infrastructure, knowledge base and engineering expertise," said Pallash, who also expects to seal a deal with Tata Motors soon. "The success of the joint venture depends on the needs of the local market, but in future, with more trade agreements being signed between countries, we will look at exports. Since our effort will be in localising and keeping costs down without compromising on quality, our products will lend themselves to be exported," said Pallash.
Visteon has been present in India for over seven years and has manufacturing facilities in Chennai, Pune and Bhiwadi in Rajasthan.