Ashok Leyland to formalize JV with Nissan

Indias Ashok Leyland and Japans Nissan Motor Company, following the ‘Master Co-operation Agreement’ they have signed in October 2007 (announced on May 26), will form three joint venture companies for the production of light commercial vehicles, power train manufacturing and technology development. The total investment across the three joint ventures will be around US$575 million. The vehicle manufacturing company will be initially capable of producing 100,000 light commercial vehicles (LCVs), but capacity will be scaled up later. “Among the three platforms identified, covering applications up to 7.5 ton gross vehicle weight, is an all-new Nissan Atlas F-24 light duty truck,” says the press release. “In addition, an all-new engine is being developed specifically for LCV applications, as part of the range of Euro-3 and Euro-4 compliant diesel engines,” it says. (May 27, 2008)