March 25, 2002
Mitsubishi and JATCO conclude a contract to
Integrate AT/CVT Business
Tokyo - NISSAN MOTOR CO., Ltd. (Nissan), Mitsubishi Motors Corporation (MMC) and JATCO TransTechnology Ltd. (JATCO) today concluded a contract to integrate the automatic transmission and CVT business of MMC and JATCO business.
The contract is based on the Memorandum of Understanding signed on October 2001 among the three companies. This project aims to make JATCO a globally competitive manufacturer specialized in AT/CVT through the integration of MMC Kyoto and Mizushima Plants AT/CVT business into JATCO. JATCO will become one of the biggest global AT/CVT manufacturers with approximately 3.3 million in annual unit production with the expectation JATCO will further grow with annual production around 4 million units within a few years.
The three parties have agreed to the following steps:
April 1, 2002MMC to spin off its AT/CVT business and incorporate it with a new company, established by MMC as a 100% owned subsidiary, named Diamondmatic Co., Ltd. (DMC) on April 1.
Mid-May, 2002JATCO and DMC to conclude a contract to exchange shares.
Early-July, 2002DMC and JATCO to exchange shares. The ratio of
the Share Exchange is 1.31423 share of JATCO per share of DMC.As a result, DMC will become JATCOfs 100% owned subsidiary; Nissan to own approximately 82% and MMC to own 18% of JATCO shares.
JATCO and DMC are aiming to merge in the spring 2003.
End
For inquiries:
Nissan Motor Co., Ltd
Communications Department
Telephone: +81(0)3-5565-2141
Mitsubishi Motors Corporation
Corporate Communications Department
Telephone: +81(0)3-5232-7165
JATCO TransTechnology Ltd.
General Administration Department
Telephone: +81(0)545-51-0047