 "Nissan and Ashok Leyland agree to restructure partnership arrangement")
Nissan Motor Co Ltd and Ashok Leyland Ltd have entered into a restructuring agreement that will enable both companies to enter into a new phase in their business interaction. As per the new pact, Ashok Leyland will buy Nissan's stake in three joint venture companies that were formed in 2008. These joint ventures focus on technology development, and manufacturing of powertrains and vehicles. With this, these JVs will become wholly-owned subsidiaries of Ashok Leyland. The process is expected to be concluded later this year.
Vinod Dasari, managing director, Ashok Leyland, said, “We have decided to acquire Nissan's stake in the three JV companies, and this will help focus our efforts to concentrate on our core business initiatives and our customers. We will continue our relationship with Nissan under the new arrangement.”
In the new collaboration pact, Ashok Leyland will continue to build, under a licensing agreement, the Dost and Partner light commercial vehicles, which are based on Nissan's design, engineering and technology. Servicing and parts availability for customers will be ensured by a technical support arrangement. In addition, the two companies have agreed to continue a deal to procure made-in-India parts to Nissan.
"Nissan is committed to India and has invested substantially in manufacturing, research and development and sales networks in the country. We are on track to becoming a major player in the Indian market. Under the licensing arrangement with Ashok Leyland, Indian commercial vehicle customers can continue to benefit from Nissan's engineering, with servicing and parts availability also ensured,” said Philippe Guerin-Boutaud, corporate vice president in charge of the global LCV business unit, Nissan.
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