Nissan Motor Co., Ltd. and Nissan Diesel Motor Co., Ltd. have established a new joint equity company, Nissan Motor Light Truck Company Ltd., based on an agreement concluded between the two manufacturers in May this year. Andy Palmer, programme director in the Nissan Programme Director's Office, has been appointed president.

The new company has an initial capitalisation of one billion yen, with Nissan holding 85% of shares and Nissan Diesel 15%. However, Nissan Diesel is permitted to expand its shareholding to as much 25% of total stock.

The operations of the new company will cover development, manufacture and sale of 1-2 ton payload light duty truck bodies, drivetrain and associated parts. The company will not only target the Japanese light truck market but also those of China and Europe, where the expansion is expected. It plans to launch trucks on the global market from around 2006.