Nissan acquires 34 per cent stake in Mitsubishi Motors ~ station of gear

Following Mitsubishi emissions scandal, Nissan takes 34 per cent stake in its fellow Japanese manufacturer

2016-05-12 10:33

Nissan and Mitsubishi Motors have announced a basic agreement has been signed which will see Nissan take a 34 per cent stake in its fellow Japanese manufacturer for 237 billion yen (£1.5 billion).

The announcement follows the news that Mitsubishi had been cheating emissions tests on some vehicles sold in Japan, a practice that could have been going on for around 25 years.

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The two manufacturers have worked together on the development of several models over the last five years, but the extending of the alliance now makes Nissan the largest shareholder in Mitsubishi. The alliance will see the two brands working more closely together, sharing vehicle platforms, technology, and purchasing costs.

"This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors," said Carlos Ghosn, chief executive and president of Nissan. " It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies."

Both manufacturers will sign the agreement before the end of May, with other shareholders in Mitsubishi to approve the deal, too. It is expected to be finalised before the end of the year.

Do you think this is a good move for Nissan and Mitsubishi? Let us know in the comments...

Jonathan Burn

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