Nissan buys controlling stake in Mitsubishi
Nissan Motor Co. has announced that it will purchase a 34% controlling stake in Mitsubishi Motors.
Following a Mitsubishi Motors (MMC) share issue, Nissan will buy an equity stake for the equivalent of US$ 2.2 billion. Mitsubishi’s stock value plummeted recently after it emerged that the company was cheating on Japanese fuel economy tests for a decade, mostly involving its mini “kei” cars. Apparently the breach was spotted by Nissan themselves, who were selling the same kei cars with Nissan badging as well.
The “strategic alliance” will extend an existing partnership between Nissan and MMC, under which the two companies have jointly collaborated for the past five years. Nissan and MMC have agreed to cooperate in “areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilisation and growth markets,” as per the announcement.
The decision by Nissan to acquire a strategic stake in Mitsubishi’s motoring arm marks the latest expansion of its Alliance model, “built around a 17-year cross-shareholding arrangement with Renault.” Nissan has also acquired stakes or signed partnerships with other automotive groups including Daimler and AvtoVaz.
Photo coutesy of Malaysia Chronicle.
Comments
Sevan Ruben
a good move by Mitsubishi to correct all it’s many years mistakes , weren’t able & even didn’t try to solve their snow ball problems , what Nissan did during 17 years is a good example for Mitsubishi , face the problems , get rid of non lucrative businesses , models ,some sacrifices ,they have the potential but lost their way , they helped many Asian auto firms including Hyundai.
Prado
very smooth Nissan, expose Mitsubishi on it;s lies, plummet the share value and then buy at a discount….
Leborde
For once that a French business is somewhat working (let’s not call it successful), it’s run by a Lebanese 🙂
vivek
Hopefully the Xtronic CVT wont make its way into Mitsubishi
Faisal
now will be good, i hope that
Farhan
So do we expect MitsuSan or NitSubishi vehicles coming in the near future… :/
Nabeal
so hopefully after a couple of decade we will see a new Pajero. and i hope they revive eclipse with rare or all wheel or may be GT3000.