Ashok Leyland and Nissan Sign Agreement for LCV Partnership
31st October, 2007
India's Hinduja Group flagship company, Ashok Leyland and Japan's Nissan Motor Co., Ltd., have this week signed a binding Master Co-Operation Agreement (MCA) for the formation of three joint venture companies supporting the Light Commercial Vehicle (LCV) business. The agreement was signed in Chennai by Mr. R. Seshasayee, Managing Director of Ashok Leyland and Mr. Carlos Ghosn, President and CEO of Nissan Motor Co., Ltd.
This agreement follows the signing of the Heads of Agreement (HoA) document in August and reflects progress achieved with the detailed project evaluation. It formalises the partnership between the companies, which will include the development and manufacture of LCV products under both the Ashok Leyland and Nissan brands as well as cooperation in sales.
The two companies anticipate an investment in the neighbourhood of US$500 million for the implementation of three joint venture companies that are to cover the following business areas:
In addition, the two partners also expect to cooperate to leverage each other's dealer networks in specific global markets. For example, this could provide Nissan with access to Ashok Leyland's dealers in India and for Ashok Leyland, access to Nissan dealer networks in specific export markets.
The Joint Venture is also set to benefit from leveraging the sourcing strengths of both the partners.
Mr. Gopichand P. Hinduja, President of the Hinduja Group of Companies:
Mr. Dheeraj G Hinduja, Co-Chairman, Ashok Leyland:
Mr. R Seshasayee, Managing Director, Ashok Leyland:
Mr. Carlos Ghosn, President and CEO, Nissan:
Mr. Andy Palmer, Corporate Vice President, Nissan:
About Hinduja Group
The Hinduja Group is a multi-billion dollar global investment and banking group with a diversified global portfolio of holdings across the manufacturing services and banking sectors. The Group, founded by Shri P.D. Hinduja in 1914, has activities across three core areas: Investment Banking, International Trading and Global Investments. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance, Infrastructure Project Development, Chemicals & Agri business, Energy, Real Estate and Healthcare.
The Hinduja Group also supports charitable and philanthropic activities across the world through the Hinduja Foundation.
About Ashok Leyland
Ashok Leyland is the flagship of the Hinduja Group and a leading manufacturer of commercial vehicles in India with 06/07 sales turnover of more than US$2 billion. With six manufacturing locations at Chennai, Hosur (three plants), Alwar and Bhandara, the Company has an annual production capacity of 84,000 vehicles which is being enhanced to 100,000 in the current year. The Company has associate companies in the Czech Republic and the UAE and joint ventures in Sri Lanka and Bangladesh, and also exports to over 20 countries.
Nissan Motor Company generated global net revenues of 10.468 trillion yen in 2006. Nissan is present in all major global automotive markets selling a comprehensive range of cars, utility trucks, SUVs and light commercial vehicles under the Nissan and Infiniti brands. Nissan employs over 180,000 people worldwide.
Under the Nissan Value-Up business plan, the company continues to focus on long-term sustainable and profitable growth driven by
In 2007, Nissan will introduce 11 all-new products globally, with a further 33 to be introduced during the following three years.
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