Nissan looking to buy stake in Defiance Technologies
Nissan Motors is in talks to buy a 20-40 per cent stake in Defiance Technologies. A report on Economic Times suggests that the talks are in the advanced phase with Defiance's parent company Hinduja Automotive.
For the uninitiated, Defiance Technologies is the company behind the engineering and development of the Datsun Go small car. The Datsun Go has been launched in the fiercely competitive compact hatchback segment and has been received with very positive response selling more than 2000 units in the first ten days of its introduction. The car's competitive pricing and smart design has won over many customers. The reason behind its affordable pricing is the low cost incurred in its development at Defiance Technologies which had more than 100 of its engineers working on the small car for several years.
Ashok Leyland, a part of Hinduja Automotive has 29 per cent share of Defiance Technologies. The reason we mention Ashok Leyland is because the manufacturer is currently not in the best of financial conditions and is looking for ways to decrease the red ink on its balance sheet. This opportunity from Nissan might infuse some much needed cash in to the company's coffers. As of now this is all speculation so we will have to wait and see what happens.
Currently, Defiance Technology is currently working with Nissan on its upcoming entry level hatchback codenamed the i2. The i2 is based on a totally new platform and will look to compete with the segment leader the Maruti Suzuki Alto 800 after it is launched.
Source: Economic Times