Wednesday, December 15, 2010

Nissan and Mitsubishi to expand business tie up

Nissan and Mitsubishi to expand business tie up
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 to other countries.
In the agreement announced Tuesday, 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
(1) Currently Nissan Buy Mitsubishi’s Kei car;the Ek wagon,Townbox and Pajero Mini. then rebadge to Nissan brand in their home country.
(2) The two has agreed to form a comprehensive tieup centered on the formation of a50-50 joint venture to design and develop minivehicles for the domestic market.Mini vehicles are defined by specifications unique to Japan: maximum length of 3.4 meters (11.15 feet), width of 1.48 meters (4.86 feet), height of 2 meters (6.56 feet) and engine displacement of less than 660 cc.The two companies are moving to establish a 50-50 joint venture next year and release a new minicar model in 2012
(3) The two carmakers will also boost reciprocal supplies of vehicles procured on an original equipment manufacturing(OEM)basis.
(4) Nissan will provide a light van and wagon to Mitsubishi Motors for the domestic market, while Mitsubishi Motors will supply Nissan with a sport utility vehicle for markets in the Middle East.
(5) To cope with capacity shortfalls in Thailand, Nissan will shift production of its brisk-selling Navara pickup truck to Mitsubishi’s plant in Laem Chabang Industrial Estate in Chonburi Thailand, said Nissan CEO Carlos Ghosn. It may collaborate on a new one-ton pickup model as well.
(6) In the longer term, the two companies are looking at manufacturing and engineering collaboration of a new generation one-tonne pickup truck. If this takes off, the next generation Triton and Navara could be non-identical twins underpinned by the same platform and rolling out from the same factory.
(7) “In the  auto industry, cooperation on specific projects among automakers is becoming increasingly common,” Ghosn said at a joint press conference with his Mitsubishi counterpart.
“It is, in fact, a signal of how our industry is evolving to sustain success over the long term, by leveraging size, scale and investments more effectively to create more value,” he said.
(8)Nissan and Mitsubishi aren’t the only ones eyeing the minicar market. In September, Toyota Motor Corp., the world’s biggest automaker, announced plans to expand its product line to include minivehicles made by subsidiary Daihatsu Motor Co.
(9)Nissan and Mitsubishi may collaborate on electric cars sometime in the future, but it’s “too early” to embark on anything concrete, Ghosn said.
(10) Both presidents denied the possibility of forming a capital tie-up.

No comments:

Post a Comment