Nissan Motor Company and Mazda Motor Corporation have signed an agreement to continue Nissan''s original equipment manufacturing (OEM) supply of light commercial vehicles (LCVs) to Mazda. Since 1994, Nissan has been supplying the ''AD Van'' LCV to Mazda, which badges it as the Familia Van. Based on this agreement, supply of the next generation AD Van to Mazda will commence in the second half of 2006.

"This agreement confirms our intention to establish a long-lasting business relationship with Mazda and is in line with our strategy to grow our global business profitably through direct sales or OEM agreements," said Andrew Palmer, vice president and head of Nissan''s LCV business unit.

Executive Officer and General Manager of Mazda''s Program Management Division, A. Kumar Galhotra, said, "Nissan is an important partner in our light commercial vehicle strategy. With the conclusion of this agreement, our mutual and ongoing OEM supply arrangement can be maintained, allowing both companies to be able to expand their LCV business."

Nissan will supply the next generation AD Van base model to Mazda on an OEM basis, which Mazda sells as the Familia Van in the Japanese market. Mazda''s current Familia Van is based on the Nissan AD Van and Nissan has supplied approximately 3,000 units of this vehicle to Mazda since 1994. Conversely, in 1994, Mazda started OEM supply of the Bongo Van/Truck for sale as the Nissan Vannette Van/Truck, supplying about 23,000 units annually.

Nissan has identified its light commercial vehicle business as one of four new growth areas for the company under its Nissan Value-Up three-year business plan, which started this fiscal year.

With "Mazda Momemtum", its mid-term business plan, the Hiroshima-based company is positioning the commercial vehicle segment as an important element to reinforce its dealer infrastructure in Japan.