Eight Carmakers Form New Alliance for Shredder Residue Recycling

Tokyo, Japan, Jan. 09, 2004 - (JCN Newswire) - Isuzu,
Suzuki, Nissan, Nissan Diesel, Fuji
Heavy Industries, Mazda, Mitsubishi and
Mitsubishi Fuso Truck & Bus agreed on the establishment of the
Automobile Shredder Residue Recycling Promotion Team (ART). 

The ART has been formed in line with the End-of-Life Vehicle Recycling
Law (Vehicle Recycling Law) coming into effect in January 2005 as an
important component of the framework for the effective, smooth and
efficient recycling of automobile shredder dust (ASR). ASR is one of the
products carmakers will be obliged by law to recover and recycle as a
Designated Recycling Product. 

The ART will therefore take responsibility for corporate activities as
part of an effort by the eight companies that ranges from ASR recovery
to recycling and disposal. Specifically, the companies will appoint a
consultative operating panel which will ally with a number of commercial
operators with recycling know-how, set ASR recovery criteria and
designated recovery locations, and examine recycling methods.

In addition, the group will seek efficiencies by outsourcing the work
involved in shipping management, recycler/final disposal handler
management and payment for recycling and disposal fees to businesses and
other entities that have the relevant know-how.

This alliance was formed through the judgment of each vehicle
manufacturer, and was decided upon after meticulous examination over the
seven months since last June. The new partnership will be extremely
competitive, making the most of each company's strengths. The ART will
ensure transparency in all activities, observing the requirements of the
law whilst aiming to minimize costs through streamlining those
activities. The makeup of the team is flexible, and members will be able
to participate or pull out freely as circumstances change. As a result
of consultations between ART participating members, Nissan has been
selected as team leader.

The formation of the new eight-company alliance enables the carmakers to
share the knowledge of recycling they have accumulated, and its
structure will also allow commercial entities to contribute their
know-how. The amassing of ASR from all companies is also expected to
generate economies of scale. Therefore, this alliance will give scope
for benefits exceeding those that would accrue if each vehicle
manufacturer recovered and recycled ASR independently.