German Car Zone

http://www.emercedesbenz.com/Oct05/2...artEngine.html



Smart gmbh and the Mitsubishi Motor Corporation have signed an agreement today stating that Mitsubishi will supply engines for a future smart model.

The natural aspirated and turbo-charged engines are the same engines Mitsubishi is using in their "i" model, a compact minicar they're set to launch in January of 2006. They will be produced at Mitsubishi's powertain production facility in Mizushima, Okayama Prefecture, Japan, and will make their debut on the smart fortwo successor model.

To learn more about smart and Mitsubishi's agreement, check out the full press release below.


OFFICIAL PRESS RELEASE


Mitsubishi Motors And smart Sign Agreement On Engine Supply

Böblingen, Oct 28, 2005

Mitsubishi Motors Corporation (MMC) and smart gmbh have signed an agreement on engine supply. MMC will supply an engine of the same type as the turbo-charged engine to be used in i, MMC’s new concept minicar due for launch in January 2006.

The engine will be further developed for use in smart’s fortwo successor model. After the launch of the current smart fortwo in October 1998, its successor will be available from 2007 onwards.

MMC and DaimlerChrysler have been cooperating on various win-win projects in recent years and further ones are constantly in discussion. They generate substantial synergy effects for all partners and this engine supply agreement is another part of this cooperative relationship. The engines to be supplied are the natural aspirated and turbo-charged engines based on the engine developed for i and will be produced at MMC’s powertrain production facility in Mizushima, Okayama Prefecture, Japan.

Together with the engine production for i MMC will be able to realize economies of scale through this agreement, thus lowering costs on a per-unit basis.

Copyright © 2005, DaimlerChrysler AG

Seems like a smart move (no pun intended). Sharing the engine will help keep costs down and hopefully help smart to eventually become profitable. I'd sure hate to see the brand die.

Yep this is similar to BMWs MINI strategy.
Albeit IMO they should have killed the ForTwo not the ForFour.