Nissan has rescue plan
TOKYO - Nissan Motor Co., Renault SA and a group of banks have worked out a plan to try to save Nissan Diesel Motor Co., Nissan's troubled truckmaking affiliate. Nissan Motor and Renault each own 22.5 percent of Nissan Diesel.
Under the deal, Renault and its truckmaking units, RVI and Mack Trucks, will begin sourcing engines from Nissan Diesel and will distribute two of Nissan Diesel's light-duty trucks outside Japan. Nissan Diesel will distribute a Renault light commercial truck in Japan.
On the financial side, Nissan Diesel will get an additional credit line of ¥200 billion, or about $1.8 billion at current exchange rates, over four years. Banks also will issue a security against Nissan Diesel's Ageo plant in a move expected to generate about $238 million.
SAAB DEAL: $125 MILLION
STOCKHOLM - Investor AB said last week it will receive $125 million for its half share of Saab Automobile AB from General Motors. The deal will give GM 100 percent ownership of Saab but does not address the approximately $500 million Investor has lent to Saab. GM originally bought half of Saab in 1989. Saab and Investor are based in Sweden.
TOYOTA RAISES PRICES
LOS ANGELES - In late December, Toyota Motor Sales U.S.A. Inc. raised prices on most of its cars and trucks, effective Feb. 1. At that time, the company pointed out that the Echo and Celica lines were not included in the increase.
Toyota made up for that omission last week. It raised the Echo four-door sedan $80 and increased sporty Celica hatchbacks $180. The Echo and Celica prices are effective Feb. 28.
MITSUBISHI PLANS SALE
TOKYO - Mitsubishi Motors Corp. will sell off part of the land and buildings at its Oye factory outside of Nagoya in central Japan. The sales will result in an extraordinary profit of ¥5 billion, or about $46.1 million at current exchange rates, when completed by the end of March. Several other sites remain under consideration for sale.
SUZUKI BUMPER SHREDDER
TOKYO - Suzuki Motor Corp. will distribute a plastic bumper-recycling machine to its car dealers in Greater Tokyo as well as the Kinki region of Japan, which includes Osaka, Kobe and Kyoto. The recycling machine will allow quick, inexpensive shredding of plastic bumpers and small instrument panels, resulting in more easily transported residue. Suzuki developed the recycling machine, which can shred a plastic bumper in about six minutes.