Nissan & Mitsubishi tie up
Japan - Nissan Motor Co. and Mitsubishi Motors Corp. will be forming a minicar joint venture in Japan in a bid to gain a stronger foothold in the global automotive industry.
The two automakers have signed an original equipment manufacture (OEM) partnership, where each will supply vehicles to the other to sell under its own brand.
Nissan will produce a minivan to be sold under Mitsubishi's brand for the Japanese market, while Mitsubishi will create an SUV sold under Nissan's in the Middle East. This will lower production costs, AP reported.
Nissan will also be moving its production of Navara pick-up trucks to Mitsubishi's plant in Thailand due to a lack in capacity. The companies may also jointly produce a new one-ton pickup model.
"In the global auto industry, cooperation on specific projects among automakers is becoming increasingly common," Carlos Ghosn, CEO of Nissan said.
A strong presence in Japan would allow the companies to manufacture products that could be competitive outside the country, he added.
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