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Mahindra teams up for green tech

2010-05-27 07:23
Indian utility vehicle maker Mahindra & Mahindra Ltd. agreed to buy a majority stake in Reva Electric Car Co Ltd. as General Motors exits its partnership with the pioneering electric car company.

Under the deal signed Wednesday, Mahindra will acquire 55.2% in Reva, to be renamed Mahindra Reva Electric Vehicle Co.

The full financial terms were not disclosed, but Mahindra will buy part of the founder's stake and invest an additional 450 million rupees ($9.5 million).

"Our association with Reva will only help us further expand our green footprint both in India and overseas," Mahindra & Mahindra managing director Anand Mahindra said in a statement.

Electric Chev Spark mooted

General Motors premiered an electric version of the Chevrolet Spark, a mini-car made just for India, powered by Reva technology at the January auto show in New Delhi. It was the product of more than a year of collaboration between the two companies.

That car now won't be produced, and GM won't be able to launch an electric car in India by year's end, as planned, said Karl Slym, president of General Motors India.

GM decided to scale back its collaboration with Reva earlier this year to make just a test fleet of vehicles, rather than cars for sale, to allow more time for testing, he said.

"Now we've stopped the test fleet as well," Slym said by phone.

"We were doing it purely as something to learn. Now there's no real benefit to that. We may as well stay with the GM solutions."

GM plans to launch the Volt, an extended range electric vehicle, in North America later this year.

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