Why HM Sold Out to Caterpillar, Reports just-auto.com

15 November 2000
Why HM Sold Out to Caterpillar, Reports just-auto.com
    LONDON, Nov. 15 http://www.just-auto.com -- The sale of
Hindustan Motor's earthmoving division to Caterpillar will ensure a more
profitable and efficient future, according to Arjab Basu of just-auto.com.
    In a special report at
http://www.just-auto.com/features_detail.asp?art=341, Basu explains how the
proceeds from the sale will go a long way towards the restructuring of the
company as a whole.
    The funds would go into the financial restructuring of HM's Indore plant,
whilst the Uttarpara plant would switch from producing Ambassadors to making
components.  The Chennai plant currently assembles Mitsubishi Lancers from
kits but would become a fully fledged joint venture with Mitsubishi with
financial participation from the Japanese company -- a much better option than
selling off the Lancer plant and gaining Mitsubishi as an equity partner for
that venture alone.
    Basu states:  "This is where the sale of the earthmoving division slots
neatly in.  It will provide the desperately needed finances to kick-start the
company's future."
    For the full story, click here:
http://www.just-auto.com/features_detail.asp?art=341

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