Suzuki Motors to supply small cars to Mitsubishi Motors
The Japanese auto mobile maker Suzuki will be rendering compact cars to its counterpart, Mitsubishi Motors in the Japanese auto market. The two auto biggies revealed it recently, as the Japanese auto manufacturers are exploring opportunities to sail smoothly in the exhaustive Japanese car market.
The auto companies released a joint statement announcing that Suzuki will be giving 800 Solio cars to Mitsubishi Motors in one month in its original equipment manufacturer (OEM) agreement. The statement also quoted that the OEM supply of cars will lure new buyers toward Mitsubishi Motors by increasing its portfolio.
It is being learnt that with the agreement Suzuki visions to improvise on its productivity and lessen the development and production cost by raising the economies of scale.
In Japan, small and compact cars are quite popular credited it to the fuel economy it comes with and the size which helps in driving easily from the narrow streets.
Alliance between Suzuki and Mitsubishi is one among many alliances formed by Japanese auto makers to sustain in the declining auto sector as there are no takers for the cars due to their exhaustive domestic auto market.
In the beginning of December 2010, Mitsubishi Motor and Nissan Motor declared an extended joint venture deal especially aiming at the cooperation on the mini cars in Japan and small cars for the world auto market.
If looking at the Japanese new auto mobile market, it seems to have a sharp fall in the coming year as the government has taken a green car incentive programme which will be ending in this year.
The Japanese auto giants from sometime are diverting the manufacturing and sales in the global auto market, mainly towards the growing Asian auto sectors. The shift is because of the Japanese car buyers are not investing in new cars due to raising fuel cost, maintenance cost and taxes.
Suzuki Motors, on the other hand is playing its cards right in the overseas auto markets. Recently, Suzuki showcased the new look of its popular sedan Maruti SX4 in the Guangzhou Motor Show for the very first time. The new look of the saloon is more sporty and has few cosmetic changes which makes it look more stylish.
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