Mahindra has done a dramatic u-turn here, by selling its 70% stake in Italian engine and design firm, Engines Engineering, a stake that gave Mahindra ownership rights. This moves comes as quite a surprise as Mahindra does have a MotoGP racing effort in place. with the entire design engineering support being provided by the Italian firm. Engines Engineering was also enlisted the work of fixing the Stallio 110′s gearbox.
The Mahindra Stallio 110 will be launched in India soon. Another motorcycle that Engines Engineering developed for Mahindra is the Mojo 300, which is yet to see production reality. The decision by Mahindra to sell back its 70% stake in Engines Engineering, back to the promoter of the firm, Alberto Strazzari, has come 3 years after Mahindra acquired Engines Engineering.
Engines Engineering’s customers, almost all of them automakers, are said to have expressed apprehensions about the intellectual property becoming compromised due to Mahindra owning Engines Engineering. Considering that Mahindra is only one amongst the many clients that Engines Engineering has, the decision by Mahindra to exit the stake makes the most sense to ensure business continuity for the Italian firm.
Engines Engineering counts big names in the motorcycle industry like Honda, Yamaha and Ducati as its customer base. Meanwhile, here’s what Mahindra has had to say about the latest development regarding Engines Engineering
The Mahindra Stallio 110 will be launched in India soon. Another motorcycle that Engines Engineering developed for Mahindra is the Mojo 300, which is yet to see production reality. The decision by Mahindra to sell back its 70% stake in Engines Engineering, back to the promoter of the firm, Alberto Strazzari, has come 3 years after Mahindra acquired Engines Engineering.
Engines Engineering’s customers, almost all of them automakers, are said to have expressed apprehensions about the intellectual property becoming compromised due to Mahindra owning Engines Engineering. Considering that Mahindra is only one amongst the many clients that Engines Engineering has, the decision by Mahindra to exit the stake makes the most sense to ensure business continuity for the Italian firm.
Engines Engineering counts big names in the motorcycle industry like Honda, Yamaha and Ducati as its customer base. Meanwhile, here’s what Mahindra has had to say about the latest development regarding Engines Engineering
Some of the customers in developing markets were not comfortable with the close association of EE(Engines Engineering) with MES(Mahindra Engineering Services) and Mahindra Two Wheelers. Given the fact that the large majority of MES revenue derived from the services it provides to non M&M customers and protects their intellectual property by adequate firewalls, this discomfort appeared more emotional than rational.Incidentally, Engines Engineering was instrumental in developing the unit construction engine for Royal Enfield, an engine which infused new life into Royal Enfield motorcycles with a mix of reliability and fuel economy. It remains to be seen as to how Mahindra’s existing and future arrangements with Engines Engineering will be affected by this latest development.
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