Nissan Motor and Mitsubishi Motors Reach Basic Agreement on OEM Supply of a Mini-Commercial Vehicle
JapanCorp: <http://www.japancorp.net/?page_num=1> Nissan Motor and Mitsubishi Motors Reach Basic Agreement on OEM Supply of a Mini-Commercial Vehicle Tokyo, Japan, Mar. 13, 2003 - (JCN Newswire) - Today Nissan Motor Co., Ltd., and Mitsubishi Motors Corporation announced a basic agreement through which Mitsubishi Motors will supply its "Minicab" mini-commercial vehicle to Nissan on an OEM basis. The model will come in two body types, a truck and a van. Nissan will source about 20,000 vehicles per year from Mitsubishi Motors, starting in the third quarter of FY2003. Through this arrangement, Nissan will be able to expand its product lineup and broaden its customer base in the mini-vehicle market. Mitsubishi Motors will be able to enhance its manufacturing efficiency by increasing its production volume of mini-vehicles, bolstering the foundation for its mini-vehicle business operations. This move marks Nissan's second entry into the mini vehicle market in Japan and its first in the mini-commercial market. The mini-commercial vehicle segment currently represents about 30% of the overall mini-vehicle sales in Japan. With its entry into the minicar market last April with the launch of the Moco, Nissan will have one model each to offer for passenger and commercial use in the mini-vehicle market. By expanding its product lineup across all profitable market segments, Nissan expects to attract new customers, to expand its customer base and to offer a wider range of choices. Mitsubishi Motors will be able to reduce development and manufacturing costs and to enhance productivity by achieving increased economies of scale for mini-vehicles. In addition, the expansion of its mini-commercial vehicle operations will enable the company to further strengthen the foundation for its overall mini-vehicle business. Mini-vehicles represent an important segment for Mitsubishi Motor's product lineup, which includes the key eK Wagon and other minicar models. Both companies expect Nissan's entry in the mini-commercial vehicle market to satisfy customers' needs and create expanded business opportunities for mini-vehicles. About Mitsubishi Motors Corporation Mitsubishi Motors Corporation was established in 1970 and is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer financing services and provides this to its customer base. Automobile operations accounted for 98% of fiscal 2000 revenues and financing business, 2%. The company has one hundred and eighty nine consolidated subsidiaries worldwide. Overseas sales accounted for 56.8% of fiscal 2000 revenues. Mitsubishi Heavy Industries, Ltd. is the major shareholder with 25.62% of issued stock.For further information, please visit the Mitsubishi Motors Corporation home page at: www.mitsubishi-motors.co.jp <http://www.mitsubishi-motors.co.jp> About Nissan Motor Co., Ltd. Nissan Motor Co., Ltd. was established in 1933 to manufacture and market the Datsun, a small passenger car, and related automotive components. The company is Japan's second largest automobile manufacturer and the world's fifth, with annual global sales of 2,415,433 vehicles. The company markets a wide range of passenger cars, commercial vans, trucks and buses, parts and components in over one hundred and seventy countries. The company has also expanded its operations to include forklifts, textile machinery and other industrial machinery and equipment. Nissan's affiliation with French automaker Renault in 1999 has helped produce Nissan's best results in a decade. The company has three hundred and forty two consolidated subsidiaries worldwide. Consolidated sales in FY 2000 exceeded $49 billion dollars (Euro 55 billion.)For further information, please visit the Nissan Motor Co., Ltd. home page at: www.nissan.co.jp/ <http://www.nissan.co.jp/> Contact Mitsubishi Motors Corporation Fumio Nishizaki f-nishizaki@mitsubishi-motors.co.jp +81-3-5232-7342 _____ Mar. 13, 2003, 22:49 (JST) Source: Mitsubishi Motors Corporation Source: Source: Mitsubishi Motors Corporation Nissan Motor Co., Ltd. Mitsubishi Motors Corporation www.mitsubishi-motors.co.jp <http://www.mitsubishi-motors.co.jp> Nissan Motor Co., Ltd. www.nissan.co.jp/ <http://www.nissan.co.jp/> From the Japan Corporate News Network www.japancorp.net <http://www.japancorp.net> Topic: Business Tieup Sectors: Auto Manufacturing, Auto General © 2003 JCN Newswire. A division of Japan Corporate News Network KK. All rights reserved.