Nissan, Mitsubishi to strengthen ties

Tokyo (Reuters): Nissan Motor Co and Mitsubishi Motors Corp will expand the number of car models they make for each other as the two Japanese companies seek to trim costs at their home plants, the Nikkei business daily reported.

The automakers’ top executives will announce the decision to bolster mutual OEM production at a news conference on Tuesday, the paper said.

“At this moment we have no comment to make regarding the report or a press briefing,” a Mitsubishi Motors spokesman said.

As yen strength persists and home sales contract, Japan’s carmakers are under pressure to switch production overseas to lower-cost markets.

However, political pressure to protect jobs in Japan means they are also looking for ways to trim expenses at domestic plants to keep them open.

Nissan plans to stop building its popular U.S. model, the Rogue, in Japan at the crossover’s next remodelling around 2013, transferring output overseas, an executive told Reuters last week.

The carmaker also wants to turn the plant that makes the vehicle in Kyushu into a subsidiary next year, allowing it to renegotiate wage levels with unions. Nissan, held 43 percent by Renault SA, built 1.025 million vehicles in Japan last financial year.