Renault, Mitsubishi sign deal

Renault, Mitsubishi sign deal

TOKYO (AFP): French automaker Renault SA has placed massive orders for turbochargers with Japan's Mitsubishi Heavy Industries Ltd. and plans to triple purchases in two years, a business daily said Saturday.

Renault, which has been sourcing a major portion of turbochargers to Garrett Automotive Group of the United States, will buy 20,000 units from Mitsubishi between next April and March 2000, Nihon Keizai Shimbun said.

The purchase will be increased to 60,000 units annually in the following year, the daily reported.

Renault will use the Japanese-made parts for its diesel-engine cars, it said.

The move comes as Mitsubishi Heavy is looking to boost market share in Europe and is promising quick delivery from an assembly plant in Netherlands, it said.