Car giants drive home a deal to get ahead in the motor world
NISSAN and smaller rival Mitsubishi Motors 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 to other countries.
In the agreement announced yesterday, the two Japanese automakers will also make more cars for each other under what is known as an “original equipment manufacture” or OEM partnership.
Under such a deal, one automaker supplies vehicles to another automaker to sell under its own brand, enabling companies to lower production costs through economies of scale.
Nissan will produce a small van to be sold under the Mitsubishi brand for the Japanese market, while Mitsubishi will make an SUV sold under the Nissan brand in the Middle East, the companies said.
Announcing the link-up were Nissan chief executive Carlos Ghosn (left) and Mitsubishi president Osamu Masuko at their joint news conference in Tokyo yesterday.