TOKYO - Nissan Motor Co. will consolidate all its automatic and continuously variable transmission business into a single spun-off unit.
To do so, Nissan bought out the 34.7 percent stake that Mazda Motor Corp. held in Jatco Corp., an automatic transmission maker the two carmakers had set up in 1970. The purchase price was not disclosed, but local press reports estimated it to be about ¥10 billion, or about $87 million at current exchange rates.
Nissan will merge Jatco with its transmission operations, which were spun off in June, to form Jatco TransTechnology Ltd. on Oct. 1. It will be capitalized at $260 million and have about 6,500 employees.
Nissan estimated that by 2005, sales of automatic transmissions will expand by between 3 million and 4 million from current levels because of rising demand in Asia.
Mazda said the new company will continue to supply it with about 30 percent of Mazda's transmissions this year. Mazda also buys transmissions from Ford Motor Co., which owns 33.4 percent of Mazda.
Nissan owns 99.2 percent of the new company. An employees' association owns the remaining 0.8 percent.