Suzuki Motor Corp. said Tuesday it is considering providing Nissan Motor Co. with Suzuki minivehicles.
"I am thinking positively about it," Suzuki Motor Chairman Osamu Suzuki told reporters.
Suzuki said officials in charge of the possible alliance between the two automakers are currently in negotiations and a decision will be reached after the sales networks and product development abilities of the two firms are assessed.
As Suzuki has already supplied minivehicles to Mazda Motor Corp. for sale under Mazda's brand name, the chairman said it is necessary to consider how the existing alliance with Mazda will affect the proposed deal with Nissan.
With low-priced cars attracting buyers amid the prolonged economic slump in Japan, Nissan aims to strengthen its dealers by entering the growing minivehicle market.
New sales target
Suzuki Motor Corp. said Tuesday it targets a combined domestic and overseas sales total of 922,000 cars this year, up from 855,695 cars last year. In terms of production, it plans to produce 1.82 million units this year, compared with 1.77 million in the previous year.
The major minivehicle maker's sales target would mark a record, if achieved.
Of the 2001 sales goal, domestic sales of the firm's mainstay minivehicles are expected to account for 574,000 units, almost flat from the previous year, company officials said.
The company aims for a 19 percent sales increase to 288,000 units in its export business, the officials said.
The company also said it will buy new shares worth 23.5 billion yen from its Hungarian subsidiary, Magyar Suzuki Corp., to lift its stake to 97.3 percent from the current 88.9 percent.
The Hungarian unit will use the funds from the sale to repay its debts.