Nissan and Mitsubishi said Thursday they have decided on which models to provide each other in Japan, fleshing out the details of broader cooperation agreed upon last year.
According to the agreement, Nissan will begin supplying its Fuga luxury sedan to Mitsubishi Motors from summer 2012, which Mitsubishi will sell under a different name. On the same time, Mitsubishi will start providing Nissan with its electric mini-commercial van, the Minicab-MiEV, sometime in the next fiscal year through March 2013.
These new projects follow on a prior agreement for Nissan to provide the NV200 Vanette compact van to Mitsubishi Motors starting from October 2011, together with the establishment of the joint venture NMKV Co., Ltd., in June 2011.
Nissan president and chief executive officer Carlos Ghosn said in December 2010: “This agreement is important for Nissan as it supports our expansion in emerging markets, meets immediate capacity needs overseas, and enables us to grow our mini car business in Japan. Our relationship with Mitsubishi demonstrates the ability of the Renault-Nissan Alliance – with its network of global partnerships – to constantly evolve and create new win-win relationships with other companies in function of specific needs and shared objectives.”
Such OEM deals are not a new in the auto industry. They allow automakers to cut costs by increasing production scale and to expand their lineup of types of cars they do not want to invest in the development or manufacturing of.