TOKYO -- Nissan Motor Co. said on Thursday it will sell a Thai affiliate that produces frames for its pickup trucks to Japanese auto parts maker Press Kogyo Co. to cut costs and concentrate on its core vehicle manufacturing and marketing operations.
Japan's second-biggest automaker declined to disclose the transaction price, but business daily Nihon Keizai Shimbun put it at an estimated 1 billion yen ($8.39 million).
The affiliate, Siam Auto Manufacturing, is 100 percent owned by a local Nissan unit, Siam Nissan Automobile, and manufactured about 100,000 frames for Nissan's Pickup model last year.
After the transfer, slated for Dec. 1, Press Kogyo would continue to supply the chassis for the vehicle, a Nissan spokeswoman said.
Under CEO Carlos Ghosn, Nissan has been looking for ways to boost efficiency by taking controlling stakes in strategically important parts makers while selling others off to fan competition among its suppliers.
Nissan plans to quadruple annual production in Thailand to 200,000 vehicles by 2008 from around 52,000 expected this year, making the country its third-biggest export base after Japan and Mexico.
It is also planning to locally produce transmission equipment and other parts to slash costs.