Mitsubishi Seals Deal With Nissan to Build Navara Pickup in Thailand

Mitsubishi works out final details with Nissan to build its competitor’s Navara 1-ton pickup truck in Thailand at one of its two Laem Chabang plants, scheduled to begin in 2012.

The auto maker is expanding the factory to accommodate the Navara. The Pajero SUV, Lancer sedan and Space Wagon multipurpose vehicle currently are manufactured there.

However, Pajero production will be shifted to Mitsubishi's second plant in the region to make space for Navara production of 60,000 units a year, Mitsubishi President Osamu Masuko tells the local media.

The second plant makes 140,000 Mitsubishi Triton pickups annually. Mitsubishi says the factory will be expanded by at least 100,000 units a year to accommodate both Triton and Pajero production.

“We are working out the investment cost for the second plant expansion,” Masuko tells the Bangkok Post. “Mitsubishi and Nissan are discussing the investment cost to upgrade the production line at the first plant for Navara production.”

The expansion is due to be completed by the first half of next year, when Navara production is set to begin.

Once the expansion is completed, Mitsubishi will have total capacity at the two plants of 300,000 units a year.

Mitsubishi is building a third plant at Laem Chabang due to be completed early next year with annual capacity of 150,000-200,000 units annually for its global eco-car.

Nissan says in a statement the Navara deal is part of an agreement signed last December to expand the scope of cooperation between the two auto makers. It follows the establishment of another joint venture, NMKV, to develop both companies’ minicar business in Japan.

The Bangkok Post reports Nissan is expected to provide a light van to Mitsubishi for the Japanese market, and Mitsubishi will supply Nissan with an SUV for the Middle East.

The two auto makers also will collaborate on the engineering of a new-generation platform for both the Navara and Triton trucks.