Aichi Machine Industry to become Nissan wholly-owned subsidiary

Nissan Motor Co and Aichi Machine Industry Co have announced that both companies have agreed to a share exchange transaction by which Aichi Machine Industry will become a wholly-owned subsidiary of Nissan. The share exchange is expected to take effect on March 22, 2012.

Nissan recently announced a wide-ranging, six-year business plan, called “Nissan Power 88", which is aimed at accelerating the company's growth across new markets and segments. This mid-term plan emphasizes geographical growth as well as sustainable mobility and mobility for all, encompassing zero-emission vehicles and low-emission technologies.

The decision to make Aichi Machinery a fully consolidated company in the Nissan group will greatly contribute to the strategic direction laid out in Nissan Power 88, such as enhancing quality, acceleration of growth through business expansion, and reducing costs. Amid intensifying market competition, the Nissan group faces accelerating demand for the development of high-performance, high-quality and cost-competitive powertrain components that meet more stringent CO2 regulations.

In terms of manufacturing, the company continues to swiftly adapt to the needs of global markets, such as by localizing production to expand global businesses, especially in emerging countries. Both Nissan and Aichi Machinery are committed to joining forces within the Nissan group to expand business in emerging markets such as China, India, Russia, Brazil and Indonesia.

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