The failed alliance: Ashok Leyland and Nissan Motors

Abstract

Ashok Leyland, the flagship company of Hinduja Group, and Nissan Motors, Japan based Auto Major, amidst much fanfare, signed a batch of agreements on August 29, 2007. The agreements announced three alliances to produce Light Commercial Vehicles (LCVs) and Powertrains, and conduct Research and Development (R&D). Nine years hence, the excitement about the future of the alliance had vanished. The alliance failed to make profits and the increasing annual losses had impaired the relationship beyond damage. Although the points of dispute are still sub-judice, both the sides have started blaming each other for the failure. This study is a modest attempt to comprehend the facts of the episode and understand what went wrong in the alliance. The study also aims to understand the factors on which success and failure of an alliance depend.