Daihatsu will supply automatic transmissions from Japan to a unit of FAW in China, according to a Nikkei report.
The Nikkei report said that shipments could start as early as this summer as FAW looks to improve the fuel efficiency of its products and upgrade technologies.
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The report noted that the move comes as China looks to raise environmental standards for cars in China and added that Daihatsu will also consider supplying engines to and jointly producing cars with China FAW Group in China.
Nikkei said that Daihatsu will supply transmissions for 36,000 cars a year from its plant in Shiga Prefecture to Tianjin FAW Xiali Automobile and the transmissions will be installed in 1.5-litre cars.
Mini car specialist Daihatsu is also expected to supply Tianjin FAW Xiali Automobile with engines for 1-litre and 1.3-litre cars, Nikkei said.
