Mitsubishi cars for Peugeot and Nissan

10th January 2005, Comments 0 comments

TOKYO, Jan 9 (AFP) - Troubled Japanese carmaker Mitsubishi Motors has inked deals to supply its cars to Japan's Nissan Motor and French carmaker PSA Peugeot Citroen from 2006, a news report said Sunday.

TOKYO, Jan 9 (AFP) - Troubled Japanese carmaker Mitsubishi Motors has inked deals to supply its cars to Japan's Nissan Motor and French carmaker PSA Peugeot Citroen from 2006, a news report said Sunday.

Mitsubishi will sell mini vehicles to Nissan and sports utility vehicles to Peugeot on original equipment manufacturing (OEM) basis, the Yomiuri Shimbun said without citing sources.

Mitsubishi, the fourth-largest Japanese automaker and hit by defect cover-ups and sagging sales, will include the OEM deals as part of its new revitalization plan to be released later this month, the newspaper said.

Mitsubishi was originally scheduled to release the revitalisation plan last month, but it postponed the release, saying the firm needed more time to refine corporate tie-ups and alliances as well as capital enhancement to improve the company's financial health.

Nissan Motor, ranked second, has said it is considering an alliance with Mitsubishi Motors.

Peugeot has said it had no alliance plans and no active cooperation project with Mitsubishi. Peugeot, however, said it regularly makes contacts with industry partners "to discuss the exchange of components" such as motors and transmissions.

© AFP

Subject: French News

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