Nissan issues JV termination notice to Ashok Leyland
Nissan Motor Company has issued a termination of licence notice to Nissan Ashok Leyland Technologies, one of its three joint venture companies with Ashok Leyland. In an official statement Nissan said, "We are working with Ashok Leyland for a mutually agreeable solution. We have no further comments on the subject."
Nissan has taken this step a few days after receiving a legal notice from Ashok Leyland for utilising the joint venture-owned equipment to make cars instead of light commercial vehicles. According to reports, Nissan has taken a decision to end the joint venture as Ashok Leyland has allegedly not paid royalty worth around Rs 200 crore to Nissan.
Reports further state that Nissan informed suppliers of Nissan Ashok Leyland Technologies about the ongoing issue between the two companies and also asked them to stop supplying parts. Nissan Ashok Leyland Technologies is an automobile technology development company in which both partners have a 50 per cent stake.
India-based commercial vehicle manufacturer Ashok Leyland and Japan-based Nissan Motor Company had formed three joint ventures in 2008. The other joint venture, Ashok Leyland Nissan Vehicles, makes light commercial vehicles with Ashok Leyland owning 51 per cent stake. The third joint venture is Nissan Ashok Leyland Powertrain in which Nissan owns 51 per cent stake.
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