Aplil 2,2001
OEM supply of mini-vehicle to Nissan
On April 2, 2001, Suzuki Motor Corporation made a press conference in Japan, announcing that we will start to supply a mini-vehicle to Nissan on an OEM basis in 2002.
Nissan and Suzuki Reach Agreement on Mini-Vehicles
Tokyo--Nissan Motor Co., Ltd. and Suzuki Motor Corporation announced that Suzuki will supply a mini-vehicle to Nissan on an OEM basis. Carlos Ghosn, President, Nissan Motor Co., Ltd, and Osamu Suzuki, Chairman & CEO, Suzuki Motor Corporation made the announcement at a press conference today in Tokyo. Beginning in 2002, Suzuki will supply about 3,000 vehicles per month to Nissan. As a result of the deal, Nissan will broaden its customer base and Suzuki will be able to increase production volume and efficiency.

The companies confirmed that one model, all-new, would have significant differentiation between the Suzuki and Nissan versions.

This move marks Nissan’s first entry into the important minicar market that currently represents 30% of the overall four-wheel vehicle market in Japan. Suzuki has held the number one sales position in this segment for the past 28 consecutive years, and this arrangement will provide Suzuki with an opportunity to establish a new business relationship with another major customer.

“To grow, we must profitably compete in every segment, including this important segment in our home market, and we have this decision after careful market and profitability analysis” said Mr. Ghosn. “Working with the segment leader as a partner, I am confident in the success of this joint project.”

Nissan will enter the segment to fuel the profitable growth initiated by the Nissan Revival Plan. A mini-vehicle will offer current Nissan owners another choice as they shop for a new car, and the company expects to expand its customer base by attracting new customers to its full lineup of vehicles.

Suzuki expects that the OEM supply of a separate and sufficiently differentiated model to Nissan, a new major customer under this arrangement, will increase its overall production volume and enhance efficiency in R&D, together with an additional cost reduction opportunity and improvement of overall productivity. This arrangement will thus ensure that Suzuki strengthens its position in the mini- segment. The company also expects that Nissan’s entry into this mini-segment will contribute to the growth of the mini-segment by expanding and vitalizing its overall customer base.