Honda Motor Co., Ltd.; the Indian Partners (hereafter “Partners*1”) ; and Hero Honda Motors Ltd.; a Honda motorcycle production and sales joint venture company in India agreed to and signed Memorandums of Understanding on a new relationship. Following the signing of the MOUs, a joint press conference was held in New Delhi, including Mr. Brijmohan Lall Munjal, the Chairman of Hero Honda, Mr. Pawan Munjal, the Managing Director and CEO of Hero Honda; Mr. Sunil Kant Munjal who represented the Partners; and Mr. Fumihiko Ike, Managing Director and Chief Operating Officer for Regional Operations (Asia & Oceania) of Honda.
Based on the consent established by the MOUs, Honda will sell all of the Hero Honda shares it currently holds, which is 26% of Hero Honda’s outstanding shares, to the Partners. Honda and Hero Honda will sign a new licensing agreement*2 which enables Hero Honda to continue producing, selling and servicing its current products. Hero Honda will change the company name. The brand name will gradually be shifted from the current ‘Hero Honda’ to the new original name. Honda will also grant new licenses for new products which will be produced and sold under the new brand name.
Source: http://world.honda.com/news/2010/c101216Motorcycle-Joint-Venture-India/
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