Nissan Diesel Motor and Mitsubishi Fuso Truck and Bus Corp. (MFTBC ) have signed a letter of intent (LOI) to explore expansion of their relationship regarding the bus business, including the establishment of a joint venture company in the bus business.
To optimize participation in the bus market in Japan, the companies would integrate bus operations including planning, research & development, production and sales under the joint company. But both MFTBC and Nissan Diesel plan to continue to offer bus product lines under their own brands.
Albert Kirchmann, president & CEO of MFTBC, said: "MFTBC is one of the leading commercial vehicle manufacturers in Asia, and it has a strong market position in Japan. Through the potential cooperation with Nissan Diesel in the bus business, we plan to strengthen our joint position in the Japanese market. Through this cooperation we are responding to the structural changes and challenges of the bus business in Japan."
The companies already participate in an OEM supply agreement reached in July 2006, whereby MFTBC has supplied Nissan Diesel with tourist coaches and some city buses and Nissan Diesel has supplied MFTBC with mid-sized buses and non-step, large city buses since June 2007.