Nissan, Fuso Sign Bus Pact

Posted on July 14, 2006

Nissan Diesel Motor Co. and Mitsubishi Fuso Truck and Bus Corp. have agreed to supply buses and bus engines to each other on an original equipment manufacturing (OEM) basis beginning in April , 2007. The two companies said in a statement that the deal is aimed at reducing development and production costs and boosting manufacturing efficiencies to meet Japan's stricter emissions regulations put in place last October.

Under the agreement, Mitsubishi Fuso, held 85 percent by DaimlerChrysler AG , would supply Nissan Diesel with large tourist coaches and some large city buses. Nissan Diesel, held 13 percent by Sweden's Volvo AB , will supply medium-sized and big buses to Fuso, while the two companies will also sell different-sized bus engines to each other.