After severing ties by exiting the joint ventures established few years ago, Ashok Leyland and Nissan are said to be renewing ties. They are claimed to be in the process of signing a new restructuring agreement, which will enable both companies to enter into a new phase of business interaction. As per the new agreement, Nissan would agree to sell to Ashok Leyland all of Nissan’s shares in three joint venture companies formed in 2008. The joint ventures focus on technology development, and manufacturing of powertrains and vehicles, and will henceforth be wholly-owned Ashok Leyland subsidiaries subject to necessary approvals from the regulatory authorities in India. As part of the new arrangement, Ashok Leyland will continue to build, under a licensing agreement, the Dost and Partner in Light Commercial vehicles based on Nissan’s design, engineering and technology. Servicing and parts availability, claim industry sources, will be via a technical support arrangement. The restructuring agreement is also said to touch upon procurement of parts.

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