Nissan Ashok Leyland JV may get embroiled in a law suit

It’s no secret that Nissan Ashok Leyland JV which was formed to venture into the light commercial vehicle segment is now in a turmoil. What started off as a promising partnership due to the highly successful Dost LCV failed to sustain the momentum down the line.

The subsequent products such as the Ashok Leyland Stile, Partner and Mitr failed to meet the JV milestones, resulting in heavy loses. Naturally, the relationship between the Indian CV major and Japanese auto giant strained to such an extent that the entities are now struggling to sort out the differences over platform-sharing, design and manufacturing.

Ashok Leyland suspends Stile MPV
Production of Ashok Leyland Stile and Nissan Evalia was halted owing to poor demand.

Economic Times reports that Nissan is preparing itself for a potential law suit against Ashok Leyland to seek a solution to the fiasco. The publication reports that a Nissan Motor Co. Japan’s legal counselors has asked the company’s Indian officials to preserve the documents pertaining to the JV and avoid any sort of contact, both oral and email, with Ashok Leyland. The counselors reportedly said that any communication between Ashok Leyland could be used as an evidence in the potential legal dispute.

The Nissan Ashok Leyland JV which involves three separate entities for vehicle manufacturing, powertrain manufacturing and product development is suffering from a depleting workforce and hence new product development activities are shelved. The dispute is likely to unfold in the form of a legal suit in the coming months.

Also read – Ashok Leyland Dost sales cross 1 lakh mark

ET says that the manufacturing and sales of Ashok Leyland Dost is not likely to be affected immediately.

Via –