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March 4, 2008 |
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MITSUBISHI MOTORS: Expands Supply Agreement with Nissan Motor Mitsubishi Motors Corporation and Nissan Motor Co., Ltd. announced an agreement to expand their original equipment manufacturing (OEM) supply involving mini-cars. Nissan and Mitsubishi currently have OEM agreements in Japan, where Mitsubishi supplies Nissan with mini-cars and small light commercial vehicles while Nissan supplies light commercial vehicles to Mitsubishi. The expanded agreement will add two new scopes of co-operation: 1. Expanded OEM supply in Japan. Mitsubishi will supply its Pajero Mini SUV to Nissan starting from autumn 2008 on an OEM basis. 2. Explore opportunities for expanded light commercial vehicle supply. Both companies will explore collaboration on the development, production and OEM supply of small light commercial vehicles for Japan and overseas markets. Nissan has a proven track record of successful OEM product exchanges. These extend across many automakers and into multiple global markets, each one executed on a win-win basis for both parties involved. Mitsubishi aims to improve its productivity and management efficiencies by growing its OEM business, and will continue to pursue a win-win strategy between collaborative partners on a global level. "A stronger alliance in minicars benefits both Nissan and Mitsubishi Motors," Kazuhito Sasaki, a senior analyst at Tokai Tokyo Research Center Co. in Tokyo told Bloomberg News. "Mitsubishi Motors can get a return on its development costs while Nissan doesn't have to pay to develop its own minicars." According to Bloomberg, Japan's drivers are shifting to minicars due to their fuel efficiency, lower tax rates, and cheaper insurance. "Nissan just can't afford to be absent from the minicar market," Mr. Sasaki added. About Nissan Motor The Japanese auto manufacturer's models include Maxima and Sentra cars, Altima and Infiniti upscale sedans, Frontier pickups, the 350Z sports car and Xterra and Pathfinder SUVs. In 1999, French automaker Renault took a 37% stake in it, and installed president and CEO Carlos Ghosn (nicknamed "Le Cost Killer" based on his talent for turning red ink black) who has since returned the Company to profitability. Renault now owns almost 45% of it. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/ -- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the Mitsubishi Motors Revitalization Plan on Jan. 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. As reported on Feb. 25, 2008, Moody's Investors Service placed the Ba3 long-term debt ratings of Mitsubishi Motors Corporation and its supported subsidiaries, Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. under review for possible upgrade. The rating action reflects MMC's successful implementation of its business strategy, which involves revitalizing its business in line with its turnaround plan for FYE 3/2008, the plan's final year. As reported on Feb. 22, 2008, Standard & Poor's Ratings Services placed its 'B' long-term corporate credit and 'B+' senior unsecured debt ratings on Mitsubishi Motors Corp. on CreditWatch with positive implications. This follows the increased likelihood that the company will achieve most of the profit targets set forth in its revitalization plan, and the progress the company has made in optimizing its global production system following its decision to close its assembly plant in Australia. |
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