Ashok Leyland and Nissan Ends 8 year Old Partnership
Ashok Leyland and Nissan Ends 8 year Old Partnership: Making an end to their 8 year old partnership, both Ashok Leyland and Nissan Motor Co Ltd today, 8th September, 2016 decided to part their ways with the Japanese partner also agreeing to sell its stake in three joint ventures to the India partner.
In May 2008, both company Ashok Leyland and Nissan Motor had formed three Joint Ventures -- Ashok Leyland Nissan Vehicles Ltd (ALNVL) for vehicles manufacturing; Nissan Ashok Leyland Power Train Ltd (NALPT) for making power trains; and Nissan Ashok Leyland Technologies Ltd (NALT), which is a technology joint venture. Both companies have invested around Rs 1000 crore as equality between them.
According to Chennai based company statement, “Nissan has agreed to sell Ashok Leyland all of Nissan’s shares in three joint venture companies that were formed in 2008.” Neither company revealed the value of the deal.
The joint venture between Ashok Leyland and Nissan Motor was meant to develop and making light commercial vehicles. This joint venture include technology development, and manufacturing of powertrains and vehicles.
This joint venture has developed Evalia, a Nissan product, Stile, Dost, and Partner. Ashok Leyland has stopped making both Evalia and Stile, as request for the two passenger vehicles never took off.
As per Ashok Leyland Chief Financial officer Gopal Mahadevan statement, “Stile and Evalia we had stopped manufacturing long back. We will now be mainly focusing on developing Dost, Partner, and variations thereof.”
Ashok Leyland said that it would continue manufacturing the Dost and Partner light commercial vehicles under a licensing contract. The two vehicles are built on Nissan Motor’s design, engineering, and technology.
Ashok Leyland managing director, Vinod Dasari said that, “We have decided to gain Nissan’s stake in the three joint venture companies, and this will help focus our efforts to focus on our core business initiatives and our customers.”