Nissan And Mitsubishi Expand OEM Business

3 April 2007

Nissan Motor and Mitsubishi Motors have agreed to expand their current business collaboration by enhancing the OEM (Original Equipment Manufacturing) contract scope.

Under the expanded OEM agreement, Mitsubishi will supply Nissan with 4,000 units per year of the Townbox minicar. Nissan will supply Mitsubishi with 3,000 units per year of the AD and AD Expert light commercial vehicles (LCV).

Mitsubishi has supplied Nissan with the Clipper (the Mitsubishi Minicab) LCV and the Otti (Mitsubishi eK Wagon) minicar, but this is the first time Nissan will supply vehicles to Mitsubishi.

Vehicle sales in Japan in March fell for the 21st straight month, led by Nissan and Toyota, capping their worst domestic business year in three decades. Sales of cars, trucks and buses, excluding minicars, fell 12.6%, to 487,738 vehicles in March from a year earlier, according to the Japan Automobile Dealers Association said.

Sales of vehicles excluding minicars dropped 8.3%, to 3.59 million units, the lowest level in 29 years, in the 12 months ended March 31.