Nissan Motor Co. is negotiating to sell minivehicles made by Suzuki Motor Corp. under its own brand name, with an annual sales target of tens of thousands in 2002, sources familiar with the negotiations said Friday.
With low-priced cars attracting buyers amid the prolonged economic slump, Nissan aims to strengthen its dealer network by entering the growing minivehicle market, they said.
Minivehicles have engines of up to 660cc and account for some 30 percent of domestic auto sales.
Nissan has been considering entering the market for minivehicles, with the firm's President Carlos Ghosn saying, "We cannot remain a mere spectator."
But Nissan has decided not to develop minivehicles independently because of the high cost, the sources said.
Instead, Nissan decided to buy Suzuki's minivehicles to sell under its own brand, with design changes to make them look like Nissan vehicles, they said.
For its part, Suzuki, whose market share is declining because of a strong challenge by Daihatsu Motor Co., expects to increase output at its factories by providing Nissan with its products, the sources said.
Some industry analysts said, however, that as Suzuki's sales outlets compete with those of Nissan, the ongoing negotiations between the two companies may run into difficulty.
Suzuki also supplies minivehicles to Mazda Motor Corp. for sale under Mazda's brand name.