A delegation from Nissan Motors’ Japanese headquarters led by executive vice-president Colin Dodge and including senior VP Gilles Normand, corporate VP Andy Palmer and at least five other top ranking officials, is expected to visit the company’s new manufacturing facility in Chennai next week.
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Production of the Micra is scheduled with the first cars expected to roll out by mid 2010. In addition to assessing the plant’s progress, the delegation is to meet with top officials of commercial vehicle maker Ashok Leyland in relation to a separate joint venture for light commercial vehicles (LCV).
About a year ago, the two companies announced the formation of three joint venture companies: Ashok Leyland Nissan Vehicles, Nissan Ashok Leyland Powertrain and Nissan Ashok Leyland Technologies.
Ashok Leyland holds the major share of 51% in the vehicle company, Nissan holds the majority of the powertrain venture and both have an equal share in technology joint venture.
About US$500m was to be invested in the three companies but delays in land acquisition have stalled the building of the new facilities so far.
Nissan’s Chennai project is being set up under a joint venture with alliance partner Renault and will have an installed capacity of 400,000 units.
Yet just 200,000 units would be produced, since Renault has scaled down its production plans due to global slowdown.
“Land acquisition issues still need to be finalised, and there is no outcome yet,” R Seshasayee, managing director, Ashok Leyland, told just-auto today.
Nissan expects to export around 20% of the expected 100,000 units of LCV production.
The joint venture has signed an MOU with the government of Tamil Nadu to acquire 380 acres at Pillaipakkam, 40km (25 miles) from Chennai.
Kevin Jacobs
