Nissan Diesel said it will begin supplying its ZD diesel engines to the Renault SA/Renault Vehicules Industriels (RVI) group from 2003 as the initial outcome of their alliance.
Nissan Diesel president Hirofumi Nakazawa estimates the diesel engine supply will reach some 30,000 units a year, adding: "This is big business for us."
Nissan Diesel currently supplies its ZD engines to Nissan Motor Co Ltd, for use in Nissan's El Grande and Terrano vehicles, at a rate of 30,000 units a year.
Nakazawa said Nissan Diesel will also start selling its 6-7 tonne capacity GVW trucks in Africa and central America through RVI/Mack's sales channels, with annual sales expected at 1,800 units.
Nakazawa said the alliance with Renault will boost Nissan Diesel's pretax profit by some 18 bln yen in total until the end of March 2005.
Nakazawa also said his firm and the Renault group will examine the possibility of co-developing a powertrain project, joint development of environment-friendly engines and joint parts procurement.
He added his firm has already received a firm commitment from the Renault group that their alliance would not be affected by the capital tie-up between Renault and AB Volvo.
Nakazawa said Nissan Diesel had no plans to strengthen ties with Mitsubishi Motors Corp, which has close business relationships with Volvo.