Suzuki and Nissan agreed to use each other's production facility

Written by: S.M.Mehdi Hassan
Nissan Motor Corporation, the second biggest automobile producer of Japan, and compact car leader, Suzuki Motor said that from now on they would expand their ongoing business relationship and allow using each other’s production plants in India. The two companies would also produce and supply vehicles to each other and sell under their brand name. The company officials declared this on Friday in order to boost their sales. Automobile is a very competitive market and one of the key requirements for survival is building up business alliance. This helps automobile producers to decrease the risks and expenses involved in production and ensure their survival in the market. This latest deal, spread words that Nissan will become a equity stake holder in Suzuki but Suzuki President Hiroshi Tsuda refuted the possibility of such tie up. On the other hand, Toshiyuki Shiga said that in Friday’s meeting there was no discussion on capital alliance.

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