Nissan is looking to become the majority stakeholder in the scandal-battered Mitsubishi Motors.
UPDATE: Mitsubishi Motors Corporation (MMC) and Nissan Motor Co. Ltd. have announced the signing of a Basic Agreement, starting a deep alliance between the two automakers. The transaction is to be finalised by the end of May 2016 with Nissan taking a 34 percent stake in MMC for 237 billion Yen ($2.962 billion Australian).
This new partnership will open up avenues for Mitsubishi through Nissan's association with Renault and Daimler. The two Japanese companies will cooperate in areas including purchasing, vehicle platforms, technology sharing, joint-plant utilisation, and support in growth markets.
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Following the fuel economy manipulation scandal involving Mitsubishi Motors, Nissan Motor Company has reportedly offered to invest 200 billion Yen (roughly $2.5 million Australian) in the troubled automaker.
In a story originating from Japanese broadcaster NHK before being rebroadcasted through Bloomberg, Nissan is apparently in the final stages of negotiations to acquire a 34 percent stake in Mitsubishi, effectively becoming the majority stakeholder. Should the deal be confirmed, Nissan would likely have to issue new shares in order to sell those to Nissan in a private placement.
On the strategic choice surrounding Mitsubishi’s next move, Maryann Keller, an independent auto analyst told Bloomberg, saying: “There is a logic to Mitsubishi Motors needing a partner, since they clearly don’t have the engineering resources to be a player in a world where technology is moving so quickly. They’ve always been an also-ran in major markets like the U.S. But they actually have a decent business in Southeast Asia, so they have some attractive assets.”
Mitsubishi Motors Corporation has hit some rather turbulent winds over the past few weeks following the big reveal that they had been misreporting fuel economy figures of their cars sold in Japan from as far back as 1991.
It was actually Nissan themselves who discovered the malpractice through certain Nissan models manufactured by Mitsubishi that had used variances in weight (or load) per tyre to yield better fuel economy during tests, leading to a large discrepancy when Nissan tested the cars for themselves.
Mitsubishi Motors Australia has clarified that cars sold in Australia are not effected. Indeed, their parent company in Japan has insisted that the cars in question were only those made specifically for the Japanese domestic market and were not sold elsewhere.
For more on vehicles from Mitsubishi or Nissan, including prices and specifications, check out our Showroom.
