New Delhi: Suzuki Motors Corp, the parent company of car market leader Maruti Udyog, today announced a manufacturing collaboration with Nissan Motor Co and said they will begin joint production in India.
"Nissan and Suzuki will start manufacturing collaboration in new emerging markets by sharing their respective manufacturing facilities. This activity will start at Suzuki's plant in India," a statement by the companies said here.
On the back of the announcement, Maruti Udyog's share prices shot up around 14 per cent at the Bombay Stock Exchange and were trading at Rs 776.30 in late afternoon.
Nissan and Suzuki announced they have agreed to expand the scope of their business collaboration in various markets.
Nissan will supply a compact pick-up truck to Suzuki from 2008 on an OEM (original equipment manufacturer) basis for sale mainly in North America while Suzuki would provide a new A-segment vehicle for Nissan on an OEM basis for sale mainly in Europe.
"Through our existing agreement with Suzuki, we have built up a relationship of trust and partnership for mutual benefit," Nissan Chief Operating Officer Toshiyuki Shiga said.
The expansion was part of Nissan's continuing drive into new market segments and further global expansion, as set out in the Nissan Value-Up business plan, he said.
Suzuki President and Chief Operating Officer Hiroshi Tsuda said the expansion of business collaboration with Nissan would strengthen Suzuki's global competitiveness through pursuit of economies of scale in production volume by additional OEM business opportunities.
"It will also ensure that Suzuki achieves its midterm five-year business plan by complementing its product portfolio in new segments," Tsuda said.
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