Nissan takes 34% stake in Mitsubishi Motors
TOKYO — Nissan Motor Co. is taking a 34 per cent stake in scandal-ridden Mitsubishi Motors Corp. in what Nissan CEO Carlos Ghosn said was “a win-win” deal that aims to repeat the success of his Nissan-Renault alliance.
Ghosn appeared with Mitsubishi chairman Osamu Masuko in a hastily called joint conference in Yokohama, where Nissan is headquartered. Ghosn said Nissan will invest 237 billion yen ($2.2 billion US) to become the top investor in Mitsubishi Motors.
Mitsubishi group companies — Mitsubishi Heavy Industries, trading company Mitsubishi Corp. and the Bank of Tokyo-Mitsubishi UFJ — will continue to hold stakes in the automaker, but they have agreed to support the alliance with Nissan.
Mitsubishi Motors has been recently rocked by a scandal over cheating on mileage tests to inflate mileage for minicar models. And reporters peppered Ghosn with questions on whether he was worried that the scandal may grow.
“This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors. It creates a dynamic new force in the automotive industry that will co-operate intensively and generate sizable synergies,” said Ghosn, who engineered Nissan’s alliance with Renault, which began in 1999.
Adding Mitsubishi will be a plus in sharing platforms, purchasing and technology, and Nissan will benefit from its strengths in southeast Asia, Ghosn said. He said he has a close relationship with Masuko and they have a good relationship built on trust.
The automakers will maintain separate identities, brands and dealerships, Ghosn and Masuko said. Nissan will purchase 506.6 million newly issued Mitsubishi shares for 468.52 yen a share. The deal is still subject to a formal signing of an agreement, regulators’ and shareholders’ approvals, but expected to close by the end of the year.
Masuko apologized for the scandal but welcomed the alliance with Nissan.
Tokyo-based Mitsubishi, which makes the makes the Outlander sport-utility vehicle and the i-MiEV electric car, acknowledged last month it had systematically falsified mileage data on its eK wagon and eK Space light passenger cars, which were produced for Nissan as the Nissan Dayz and Dayz Roox.