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Mercedes-Benz To Submit Revival Plan Soon

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Kohinoor Mandal CALCUTTA
Last Updated : Aug 26 2000 | 12:00 AM IST

The company was referred the BIFR some time last year. According to the managing director and chief executive officer Jurgen Ziegler, the revival package is being prepared in house.

"We have worked out a definite course of action and the preparation of the revival package is a part of it. We would come out of the BIFR in due course of time and the company would be registering profits. We are hopeful of breaking even during the current fiscal with a turnover of around Rs 250 crore," he said.

Meanwhile, Daimler Chrysler may go against its global procedure of rechristening the national subsidiaries of Mercedes-Benz into their names for the Indian market.

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According to the Ziegler, Diamler Chrysler may continue with the Mercedes brandname. "All over the world Daimler Chrysler is renaming the subsidiaries of Mercedes-Benz. In India, we have not yet reached that stage of business to consider such a renaming procedure but it can be different here," Ziegler said.

According to him, Mercedes has a better brand equity than either Daimler or Chrysler. "Average Indians are not aware of this brands.

Instead the Mercedes brandname is not only popular but it is also held in high respect. So, the global process of Daimler Chrysler may not be repeated in India," Ziegler said.

Daimler Chrysler along with Hyundai and Mitsubishi is working on together for a small project specifically for the Asian market. Ziegler said that Mercedes-Benz is not going for any small car specifically for India.

"We are working along with them. The project is still on the research board and nothing has been finalised. We may make certain changes that will be necessary for the Indian market. However, at present, I do not know who will be marketing or manufacturing the car. I am not sure of the price either," he said.

Daimler Chrysler has stakes in a number of its competitors. For example it holds 34 per cent in Mitsubishi, 10 per cent in Hyundai and Telco and 16 per cent in Bajaj Auto. Ziegler said that these stakes will not be transferred to Mercedes-Benz India.

"You have to realise that these stakes are held by Daimler Chrysler as it holds 86 per cent in Mercedes-Benz India. So there is no chance of any change of stake," he clarified.

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First Published: Aug 26 2000 | 12:00 AM IST

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