Tokyo, October 4, 2001 -- Mitsubishi Motors Corporation, JATCO TransTechnology Ltd. and Nissan Motor Co., Ltd. signed a Memorandum of Understanding to study integration of Mitsubishi Motors' and JATCO TransTechnology's automatic transmission (AT) and continuously variable transmission (CVT) businesses.
The three parties will make a decision on the definitive transactions and detailed terms and conditions by March 2002.
JATCO TransTechnology is a fully consolidated company of Nissan (99.7 percent) and a major AT and CVT component supplier.
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October 4, 2001
Statement
In signing an MOU today with Mitsubishi Motors Corporation and JATCO TransTechnology Ltd., Nissan's Carlos Ghosn, President & CEO, said:
"We are pleased to be signing a Memorandum of Understanding with Mitsubishi Motors Corporation and JATCO TransTechnology Ltd. to study integration of Mitsubishi Motors' AT and CVT businesses with JATCO TransTechnology.
"The results of the integration would be that JATCO TransTechnology will become a top tier manufacturer of AT and CVT components in the world.
"The move will also be strategic as it will give JATCO TransTechnology economy of scale for R&D, manufacturing and distribution. Demand for AT components will increase especially in Europe and Asia. Both Mitsubishi Motors' AT unit and JATCO TransTechnology are industry leaders in CVT technology today. The integration will enable concentration of engineering and technology resources in JATCO TransTechnology, to drive focus and impetus to the future evolution of CVT technology.
"A strong AT supplier means strong benefits for automakers around the world who are constantly seeking high quality and cost performing AT technology. For Nissan, this translates to quality and performance in the cars that we make -- and more satisfied customers."
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