TNN Feb 24, 2005, 04.40pm IST
PUNE: Bajaj Tempo Ltd (BTL) will change its name to Force Motors Ltd after shareholders approve the name change at an extraordinary general body meeting (EoGM) on April 5, 2005.
DaimlerChrysler AG (DCAG), the German-American auto maker, owns the registered trademark 'Tempo' and it has requested BTL to discontinue its use here. DCAG is a former financial collaborator in BTL, having sold its approximately 16 per cent share holding in the commercial vehicle, tractor, utility vehicle and three-wheeler manufacturer to the Firodias in 2001. DCAG had then allowed BTL an easy transition on the name change front since the two enjoy an "excellent business association."
"There was a clear understanding between us that over time the name would be changed. No clear time frame had been set," AN Firodia, chairman and managing director, BTL, told The Economic Times . He was unaware of any vehicle that still used the Tempo name outside India, pointing out that the registered trademark owner wanted it back.
A statement released here noted, "The company name will change under Section 22 of the Companies Act, 1956, as the government has directed us to change the name." Under the relevant section of the Act, when the name of a company is identified with a registered trademark, the central government can direct that company to change its name by passing an ordinary resolution.
Mr Firodia said the entire branding strategy, over the name change and issues connected with it, is currently being evaluated. It could take a few months, he said, adding that the name change would not affect the OE.
"Tempo has become a generic name in the market; it stands for a type of vehicle and is not specific to us," he said. Hence, there were unlikely to be issues over the name change.
Shareholders have in the past asked for a change of name to reflect the ownership, which was never sought to be done. However, this was at a time when Bajaj Auto Ltd (BAL) could have blocked the move. Following the sale of DCAG's shareholding to the Firodias, the latter holds over 50 per cent stake.
BTL supplies engines for the entire Mercedes range of cars assembled in India. It also supplies body panels and gear parts to DCAG for the Tempo Traveller.
In 2003, BTL signed a new technical collaboration agreement with DCAG under which the latter provided BTL the technology for the common rail diesel engine (CRDi), the OM 611.
In 2003, BTL signed a technical collaboration agreement with German heavy commercial vehicle manufacturer, MAN, for the manufacture of trucks in the 16-50 tonne range.
