Ashok Leyland forms JV with Siemens VDO
17 Jul 2007
Chennai: Ashok Leyland and automotive supplier Siemens VDO Automotive AG, Germany, have signed an agreement to set up a joint venture to design, develop and adapt ''infotronics'' products and services for the transportation sector.
Siemens VDO Automotive is the automotive supply business of Siemens AG.
The equity of the JV company would be held at a ratio of 50:50 between Ashok Leyland and Siemens VDO.
Infotronics refers to the use of electronics in automobiles to increase passsenger safety and fuel efficiency. The JV would develop electronic components and software such as instrument cluster applications, cockpit electronics and various control units for both commercial vehicles and passenger cars.
While the JV company was expected to cater to the requirements of Ashok Leyland vehicles, it would actively pursue opportunities with other vehicle manufacturers in India and abroad. It would accelerate development of next generation telematics solutions for introduction in the market.
The new company, which is expected to register a turnover of Euro 100 million in the next five to six years, would commence its operation in full swing in the beginning of 2008 employing a workforce of 100 to begin with.
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