Date:04/06/2006 URL: http://www.thehindubusinessline.com/bline/iw/2006/06/04/stories/2006060402291501.htm

Back Nissan-Suzuki tie up

In what could be the first instance of contract manufacturing of this type, Nissan Motor of Japan is all set to make cars in India. Nissan has entered into a collaboration agreement with Suzuki Motor Corporation (Maruti's parent company) for manufacturing cars in emerging markets.

Mr Simon Sproule, Corporate Vice-President of Nissan Motor, said that the tie up could be similar to the one in Thailand.

India tops the priority list with the agreement scheduled to be initiated first at Maruti's facility followed by other emerging markets. Nissan initially plans to manufacture one car in India from its portfolio under the Nissan brand. In early 2005 Renault of France, which holds a 44 per cent stake in Nissan, entered into a tie up to manufacture the Logan in collaboration with Mahindra & Mahindra.

Also under the agreement with Suzuki, Nissan will supply a mini-van to Suzuki, while the latter will supply Nissan another mini-vehicle in the Japanese market.

Further, Nissan will supply a compact pick-up truck to Suzuki from 2008 for sale in the North American market. Suzuki will, in turn, provide a new A-segment vehicle for sale in Europe.

Alagappan Arunachalam