By Katie Davis N issan Motor Co is in advanced talks to take a 34% stake in Mit- subishi Motors Corp with a $1.8 billion (U.S.) investment in Mit- subishi. The buying up of Mitsubishi shares will give Nissan a controlling stake in the carmaker. The Nissan and Mitsubishi Motors boards members will work on the details making Nissan Mitsubishi’s biggest shareholder with a stake of over 30 per cent of the company said the sources, one from each car maker. The move comes just days after Mitsubishi admitted it had knowingly manipulated fuel economy tests on some of its global subcompact models. Intriguingly, the fraudulent efficiency figures affect Nissan, too, as the two had a technical partnership for several years. This meant Nissan sold rebadged Mitsubishi models as its own.
Motors,” Ghosn also stated that, “It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies.” Going forward, the brands will further share vehicle platforms and technology as well as utilize global production facilities. Ghosn emphasized that Nissan will respect the Mitsubishi brand and history by growing its presence. It goes without saying that Nissan was taken back by Mitsubishi’s fuel economy faking, but needs Mitsubishi’s small-car prowess in the mar- ketplace and is willing to wear the storm. This deal will allow Nissan to effectively put the pedal down with Mit- subishi vehicles into flourishing global markets, most likely under the newly reinstated Datsun economy brand in 2013 returning after it was phased out in 1981 for the Nissan Brand.
The transaction, which is still subject to shareholder and regulatory approval, is expected to close by the end of the year.
Nissan President and CEO Carlos Ghosn stated that, “This is a break- through transaction and a win-win for both Nissan and Mitsubishi
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JUNE 2016 • SPOTLIGHT ON BUSINESS
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