The Hindu : Business : Ashok Leyland to partner Nissan

Online edition of India's National Newspaper
Thursday, Aug 30, 2007
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Ashok Leyland to partner Nissan

Corporate Reporter

To form three joint ventures for LCV

Manufacturing facilities will be located in India
Dealer network to be shared by the two companies

CHENNAI: Ashok Leyland and Nissan Motor Co. signed a Heads of Agreement (HoA) on Wednesday for the formation of three joint ventures supporting the light commercial vehicle (LCV) business. The first stage of the partnership between the companies will include the development, manufacture and cooperation for distribution of LCV products under both Ashok Leyland and Nissan brands.

The three companies are: Vehicle Manufacturing Company — a company with exclusive rights to manufacture LCV products in India for both the partners. The manufacturing facilities will be located in India and the company will be majority owned by Ashok Leyland. In the medium term, production volume (for Indian and export markets) is expected to be above one lakh units annually.

Powertrain Manufacturing Company — responsible for the manufacture and assembly of engines and other drivetrain components to be fitted in the LCV products and for exports. The facility will be located in India and the company will be majority owned by Nissan Motor Company.

Technology Development Company — responsible for the development of LCV products and related powertrains, destined for the Indian and identified emerging markets. This joint venture company will be owned 50:50 by the two partners. The products developed will be sold under both the Ashok Leyland and Nissan brands.

In addition, the two partners are studying cooperation in the area of sales and distribution. This includes providing access for Nissan to Ashok Leyland’s dealer network in India and for Ashok Leyland to use Nissan dealer networks in identified export markets outside India.

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