Ashok Leyland & Nissan Sign Agreement For LCV Partnership

Ashok Leyland Ltd has informed that the Company has signed on October 29, 2007 a Master Cooperation Agreement with Nissan Motor Co. Ltd, Japan for manufacture and sale of Light Commercial Vehicles and Powertrains.In this regard the Company has issued the following Press Release:Ashok Leyland Ltd and Nissan Motor Co., Ltd., on October 29, 2007 signed a binding Master Co-Operation Agreement (MCA) for the formation of three joint venture Companies supporting the Light Commercial vehicle (LCV) business. The agreement was signed in Chennai on October 29, 2007 by Mr. R Seshasayee, Managing Director of Ashok Leyland and Mr. Carlos Ghosn, President and CEO of Nissan Motor Co., Ltd.This agreement follows the signing of the Heads of Agreement (HoA) document in August and reflects progress achieved with the detailed project evaluation. It formalizes the partnership between the Companies, which will include the development and manufacture of LCV products under both the Ashok Leyland and Nissan brands as well as cooperation in sales.Vehicle Manufacturing Company - a Company with exclusive rights to manufacture LCV products in India for both the partners. Manufacturing facilities will be located in India and the Company will be owned 51% by Ashok Leyland and 49% by Nissan. Production will start in 2010 and will include the new generation Nissan Atlas F24 light-duty truck, in addition to a range of products covering application from 2.5 to 8 ton gross vehicle weights (GVW). In the medium term, production volume, intended for both Indian and export markets, is expected to grow beyond 100,000 units annually.Powertrain Manufacturing Company responsible for the manufacture and assembly of engines and other drivetrain components to be fitted in LCV products and for export. Manufacturing will be located in India and the Company will be owned 51% by Nissan and 49% by Ashok Leyland.