Nissan Motor Co. and Mitsubishi Motors Corp. have agreed to jointly develop and produce automatic transmissions, continually variable transmission systems (CVT) and other auto parts, officials of the two companies said Thursday.
Mitsubishi will spin off its automatic transmission and CVT operations by April, and the spinoff will be integrated with Nissan's subsidiary JATCO TransTechnology Ltd. by summer.
The integrated transmission maker, which will likely be owned 80 percent by Nissan and 20 percent by Mitsubishi, will be capable of manufacturing 4 million transmissions annually.