Japan's Nissan Motor Corp. and Mitsubishi Motors today announced that they plan to deepen their business ties by establishing a new minicar joint venture in Japan and further expanding their OEM projects, to save costs and increase their competitiveness in the global car industry.
Under the new agreement, the automakers will build more cars for each other under what is known in the industry as an "original equipment manufacturer" or OEM partnership.
In particular, Nissan will provide a light van/wagon to Mitsubishi for the Japanese domestic market, while Mitsubishi will offer an SUV to Nissan for markets in the Middle East. In addition, discussions are ongoing for Nissan to provide Mitsubishi with upper-end segment models for the Japanese domestic market.
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