Nissan is to supply Ford with continuously variable transmissions (CVTs) in a move designed at improving fuel efficiency of its auto gearbox SUVs.

Jatco, Nissan's contracted transmission maker will manufacture the CVTs at Nissan's assembly plant in Mexico starting as early as in 2005.

Ford plans to use the transmissions in the passenger cars it produces in North America, such as sport utility vehicles with 3.5-litres engines and high-end saloons, in order to improve fuel efficiency and provide better driving experience.

Mitsubishi Motors Corp., which last year integrated its transmission operations with Nissan, is expected to install CVTs in its cars, it said.

Nissan is the world's only automaker with the technology to mass-produce CVTs for large automobiles.