Mitsubishi Fuso to Stop Making Engines for Small Trucks

12 May 2007

Nikkei. Mitsubishi Fuso Truck & Bus Corp. plans to halt the development and production of engines for small trucks due to its financial inability to spend the sums required to develop engines to meet more stringent emissions requirements.

The company currently produces 180,000 small-truck engines each year, and will source 80% of this figure from third parties.

Mitsubishi Fuso is suffering its third straight net loss through the fiscal year ended December 2006 due to a defect cover-up scandal and other factors, and decided that it could not afford to shoulder the burden of development, according to the report in the Nikkei.

The switch to outside procurement will begin with trucks going on sale in 2009-10. The Nikkei reports that Mitsubishi Fuso may be negotiating with PSA Peugeot Citroën and Fiat to buy 140,000 to 150,000 engines in the 3- to -5-liter class in a lump-sum deal.

Large truck engines will likely come from DaimlerChrysler, with whom Mitsubishi Fuso jointly develops such engines. Mitsubishi Fuso has been jointly developing engines for large trucks with DaimlerChrysler, so it will likely procure such engines from within the group.

Mitsubishi Fuso will develop and manufacture only midsize truck engines itself, and will focus on areas such as exhaust aftertreatment and hybrid and electronic control technologies.