Nissan Diesel Motor and Mitsubishi Fuso Truck and Bus are to co-operate on domestic bus building, aiming to reduce development and manufacturing costs.
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The alliance will compete with the Hino Motors/Isuzu Motors venture which integrated domestic bus production and other non-sales operations in Japan in 2004, Kyodo News reported.
Under this latest so-called original equipment manufacturing (or OEM) deal, Nissan Diesel will provide Mitsubishi Fuso with midsize buses and engines for large route buses from April 2007 while Mitsubishi Fuso will supply large sightseeing buses and engines for midsize buses to Nissan Diesel.
The report said bus sales in Japan have fallen steadily since a peak of almost 10,000 units in 1992, to 6,093 units last year. Faced with this dwindling market, the four manufacturers have been struggling to consolidate operations.
