Suzuki Motor and Mitsubishi Motors agree on OEM supply of compact passenger vehicles in Japan
24 December 2010
Suzuki Motor Corporation (Suzuki) and Mitsubishi Motors Corporation (MMC) have mutually agreed on OEM supply of Suzuki’s SOLIO compact passenger vehicle to MMC. Suzuki will supply MMC with about 800 SOLIOs per month beginning from spring 2011.
The OEM supply is expected to generate new customers for MMC, as it will make possible response to a wide variety of customer needs by adding a new genre to MMC’s existing lineup—a “compact height wagon.”
Through the OEM supply to MMC, Suzuki aims to improve its productivity and lower production and development costs through further increasing economies of scale. This OEM supply is limited to the Japanese market.
Smaller Japanese vehicles manufacturers like Suzuki, Mitsubishi, Mazda, etc may have to pool their resources to compete against the majors in Japan, Korea, China, India, Brazil and USA. New state of the art electrified vehicles development and mass production does not come cheap.
Posted by: HarveyD | 24 December 2010 at 08:14 AM
This is a chance for both companies to do well. While I believe the average car buyer likes major brands, these two are well enough known to capture some market share.
Posted by: SJC | 26 December 2010 at 12:39 PM