Nissan buys into Mitsubishi Motors
Nissan has completed its purchase of a controlling stake in Mitsubishi Motors with Nissan CEO Carlos Ghosn to take over as Mitsubishi Motors CEO.
NISSAN HAS purchased a 34% share (AUD$2.4 billion) in Mitsubishi Motors making it the largest shareholder in the brand. Nissan has confirmed that as part of the purchasing strategy, Mitsubishi would become the third member of the Nissan and Renault alliance.
The purchase of Mitsubsishi Motors by Nissan comes in the wake of news Mitsubishi had been falsifying fuel consumption data for 25 years. It’s worth noting the scandal is confined to some Japanese Domestic Market models, and not cars sold in Australia or elsewhere around the world.
Nissan boss Carlos Ghosn said: “We will support Mitsubishi Motors as they address their challenges and welcome them as the newest member of our enlarged alliance family.
“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 cooperate intensively, and generate sizeable synergies.
“The expanded Alliance will be one of the largest automotive groups in the world, with annual sales of 10 million units in fiscal year 2016. The addition of Mitsubishi Motors will build on the entrepreneurial spirit and management cooperation that has characterised our alliance with Renault for 17 years. I am confident this will benefit all stakeholders.”
Osamu Masuko, chief executive at Mitsubishi Motors, said: “I welcome Nissan’s willingness to provide strategic, operational and management support as our new lead shareholder,” said Masuko. “As part of our Board and management team, Nissan will help us to rebuild customer trust in our company and maximise potential future synergies through our deeper alliance.”