Nis­san sends JV ter­mi­na­tion no­tice to Ashok Ley­land

The Pak Banker - - COMPANIES/BOSS -

DELHI: Ja­panese com­pany Nis­san has sent out a ter­mi­na­tion no­tice to its joint ven­ture part­ner Ashok Ley­land Ltd, a week af­ter the Hin­duja Group's flag­ship com­pany moved a district court near Chen­nai over the le­gal dis­pute with Nis­san. While of­fi­cials at Ashok Ley­land de­clined to com­ment, say­ing the mat­ter was "sub-ju­dice", a Nis­san spokesper­son said: "We are work­ing with Ashok Ley­land for a mu­tu­ally agree­able so­lu­tion. We have no fur­ther com­ments on the sub­ject." Last week, a Nis­san spokesper­son said, "We have re­ceived the no­tice from Ashok Ley­land and we are con­test­ing it." Ashok Ley­land's part­ner­ship with Nis­san for light com­mer­cial ve­hi­cles has been fac­ing is­sues for more than a year. "The Stile and Evalia plat­forms were a mis­take," said Vinod Dasari, man­ag­ing di­rec­tor, Ashok Ley­land, to Mint ear­lier this month. Ashok Ley­land Stile and Nis­san Evalia were among the prod­ucts that came out of the joint ven­ture. "Like any joint ven­ture, we have is­sues with our joint ven­ture part­ners. Some­times good and some­times bad," said Dasari. Ac­cord­ing to a doc­u­ment filed with the Board for In­dus­trial and Fi­nan­cial Re­con­struc­tion (BIFR) in Novem­ber last year, the joint ven­ture's net worth has been fully eroded due to ac­cu­mu­lated losses, which stood at Rs.172.37 crore.

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