Nissan-Renault looking for third partner for Chennai
Published On Feb 02, 2009 07:28 PM By Vikas
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The Nissan-Renault alliance has its $1.1-billion (Rs 4,500 crore) Chennai plant, which is scheduled to manufacture cars and SUV by 2010. This was a three way joint venture with Mahindra & Mahindra, Nissan and Renault as its three partners. Off late, Mahindra & Mahindra (M&M) pulled out from the project, probable reason being the lack of synergy.
Succumbing to pressures on a global scale of cutting of big ticket investments, the top managers of Nissan-Renault had no other alternative but to induct a new partner in the project.
Hinduja Group of Companies was invited to move its light commercial vehicle (LCV) joint venture project with Nissan to Chennai to better use the plant’s 400,000 unit-a-year capacity. But Ashok Leyland turned down the offer.
Nissan has a $500-million joint venture with Ashok Leyland for light commercial vehicles.They had signed a Memorandum of Understanding (MoU) with the local government for a 380-acre new factory in Pillaipakkam, also near Chennai, with 100,000-unit-a-year capacity.
This was the project Nissan-Renault had asked Ashok Leyland to shift to its Chennai plant.
