Mitsubishi Motors Corporation (MMC) and smart gmbh, a 100 per cent owned subsidiary of DaimlerChrysler AG, have signed an agreement on engine supply. MMC will supply an engine of the same type as the turbo-charged engine to be used in i, MMC's new concept minicar due for launch in January 2006.
The engine will be further developed for use in smart's fortwo successor model. After the launch of the current smart fortwo in October 1998, its successor will be available from 2007 onwards.
MMC and DaimlerChrysler have been cooperating on various win-win projects in recent years and further ones are constantly in discussion. They generate substantial synergy effects for all partners and this engine supply agreement is another part of this cooperative relationship.
The engines to be supplied are the natural aspirated and turbo-charged engines based on the engine developed for i and will be produced at MMC's powertrain production facility in Mizushima, Okayama Prefecture, Japan.
Together with the engine production for i MMC will be able to realize economies of scale through this agreement, thus lowering costs on a per-unit basis.
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