Ashok Leyland, Nissan reworking joint venture

Ashok Leyland, Nissan reworking joint venture
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First Published: Sun, Feb 15 2009. 12 05 PM IST
Updated: Sun, Feb 15 2009. 12 05 PM IST
By Reuters
Mumbai: Indian commercial vehicle maker Ashok Leyland and Japan’s Nissan Motor Co are reworking their joint venture to produce light commercial vehicles, a senior official from Ashok Leyland said on Friday.
Among the issues being reconsidered are levels of investment, types of products to be introduced and the location of the project, chief financial officer K. Sridharan told reporters in a conference call.
“Both the partners are working in terms of the revised plan. Obviously it will be too early for me to comment on what will be shape of the outcome of that discussion, so we need to wait for that,” he said.
But he said there was no question of pulling out of the venture, which had already been delayed by the slowing economy, Sridharan said.
Nissan had said last year the joint venture would delay production by about six months to September 2011, due to the depressed demand for trucks in India.
Originally it was to have started production during the business year starting in April 2010 with 80% of output slated for sale in India.
The plant was to be set up in Pillaipakkam, near the southern city of Chennai, with an inital capacity of 100,000 units a year.
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First Published: Sun, Feb 15 2009. 12 05 PM IST