Mitsubishi Motors Corporation (MMC) has announced that it will form a new transmission alliance relationship with JATCO TransTechnology (JTT) and Nissan Motor Company.
The newly integrated company will be created by mid-2002 through the integration of MMC’s existing production and R&D units of automatic transmission, with Nissan’s JATCO TransTechnology (JTT).
The newly integrated company will manufacture both automatic transmissions (AT) and continuously variable transmissions (CVT), and is expected to reach an annual level of four million units within a few years, making it the world’s largest transmission producer.
The announcement is said to be the latest action related to MMC’s ongoing Turnaround Plan, which aims to strengthen the future of the company by optimising cost, process and products to serve MMC customers best.
The transmission alliance is designed as a win-win relationship between MMC, JTT and Nissan Motor, with MMC taking a major step forward in achieving its Turnaround goals and JTT achieving its growth strategy.
According to a statement, the key advantages of this alliance are that the newly integrated company will supply MMC with top quality transmission components matching future market and technology requirements, and free MMC from the future financial and engineering investments that would be necessary for the further development of transmissions.
The formation of this alliance also is part of a global automotive industry trend in which independent suppliers of AT and CVT are expected to become dominant market players in the years ahead.