Wednesday, 23 November 2011

Mitsubishi to supply electric vehicles to Suzuki - Is Mitsubishi gaining from VW-Suzuki pact end?

Mitsubishi Motors Corporation of Japan is shaking hands with its rival in a strategy to collaborate two rivals and thus compete against a bigger rival. Suzuki and VW have been in news that they have ended the collaboration under which Volkswagen was to provide Electric Vehicle technology support to Suzuki and Suzuki will provide its marketing support.

Now with the end of the alliance between the two auto majors, Mitsubishi which has been a competitor to Suzuki is in news to start supplying Electric Vehicle technology to Suzuki starting from February 2012.
Suzuki will receive the Minicab-MiEV, which is set to debut by the year-end. Suzuki will market it under its own brand name, adding the first electric vehicle to its lineup. Mitsubishi plans to build around 4,000 of the vehicles in the financial year to next March.

Suzuki already supplies its Solio subcompact to Mitsubishi Motors.

If the companies reach an agreement, Mitsubishi, the maker of the world's first commercially produced electric car, the i-MiEV, would provide Suzuki with minicar-class light commercial electric vehicles, it said."The talks towards an agreement are intended to increase economies of scale for MMC which will in turn contribute to lower production costs and increased productivity," it said.

Mitsubishi is due to market two models of Minicab-MiEV to Suzuki of which one can run 100 Kilometres on a single electric charge and other can run 150 kilometres on a single electric charge.

Mitsubishi has also struck a similar deal to manufacture electric vehicles for sale by Nissan Motor Co., while Mitsubishi sells the Delica D:2 subcompact supplied by Suzuki.


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