Nissan and Mazda Agree on New OEM Contract

YOKOHAMA/HIROSHIMA, Japan - Nissan Motor Co., Ltd. and Mazda Motor Corporation today announced that the two companies have agreed to expand the scope of Mazda’s original equipment manufacturing (OEM) supply to Nissan. Under the agreement, Mazda will begin supply of its Premacy minivan to Nissan from May 2011.

Nissan’s OEM business involves a large number of automakers across the globe, with all schemes ensuring win-win relationships that benefit both OEM suppliers and recipients. Through this agreement, Nissan will enrich its minivan line-up in the Japanese market with the addition of a model based on Mazda’s global minivan. The agreement will also contribute to Nissan’s global investment efficiency.

Mazda developed the Premacy as a global minivan and markets it in approximately sixty countries and regions around the world. Outside Japan it is sold as the Mazda5. It is one of Mazda’s major products with a cumulative production volume of over 885,000 units (March 1999-December 2010). Under this agreement, Mazda will supply a clearly differentiated version of the Premacy to Nissan for sale in Japan. Mazda and its affiliates expect to enjoy increased profits resulting from the growth in production.

Mazda and Nissan also collaborate under an existing mutual OEM agreement. Mazda provides the Bongo Van/Truck to Nissan (sold as the Nissan Vanette Van/Truck), while Nissan supplies the AD/AD Expert to Mazda (sold as the Mazda Familia Van). The two companies will continue working with each other as major business partners maintaining their long-term relationship.