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Nissan, Mitsubishi to deepen links

  • Source: Shanghai Daily
  • [09:26 December 15 2010]
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Nissan Motor Co and smaller rival Mitsubishi Motors Corp will deepen business ties to get ahead in the fiercely competitive global car industry, including establishing a minicar joint venture in Japan that could eventually expand overseas.

In the agreement announced Tuesday, the two Japanese auto makers will also make more cars for each other under an "original equipment manufacture," or OEM, partnership.

Under such a deal, one auto maker supplies vehicles to another to sell under its own brand, enabling firms to lower production costs through economies of scale.

Nissan will produce a small van sold under the Mitsubishi brand for the Japan market, while Mitsubishi will make an SUV sold under the Nissan brand in the Middle East.

To cope with capacity shortfalls in Thailand, Nissan will shift production of its brisk-selling Navara pickup truck to Mitsubishi's Thai plant, said Nissan CEO Carlos Ghosn. It may collaborate on a new one-ton pickup model as well.

"In the global auto industry, cooperation on specific projects among auto makers is becoming common," Ghosn said at a joint press conference Tuesday.