Japan based leading car makers – Suzuki Motors and Mitsubishi Motors – have entered into an original equipment manufacturer (OEM) deal for sharing products in their domestic market. According to this deal, Suzuki will supply 800 Solio vehicles to Mitsubishi on a monthly basis, as per a joint statement issued on Friday.
The statement adds that the OEM supply is expected to generate new customers for Mitsubishi along with strengthening its product portfolio. On the other hand, Suzuki is aiming to improve its productivity along with lowering down overall development and production cost through further enhancing economies of scale.
In last one year, there have been a number of tie-ups and partnerships among major Japanese auto makers as shrinking market has forced them to explore new ways to survive.
Just few weeks back, Mitsubishi had announced an expansion of its partnership agreement with Nissan Motors. Both of the company’s are cooperating on mini and compact vehicles in Japanese as well as global market.
The Japanese market has a high potential for compact vehicles due to their high drivability on narrow city roads of Japan. Moreover, the compact vehicles deliver high fuel efficiency that makes them favorable among Japanese buyers.
The Suzuki Solio
