The two Japenese automakers have signed an agreement to, according to the official press release, form a “far-reaching strategic alliance.
Carlos Ghosn, Nissan’s chief executive, announced the firm will take a 34% stake in Mitsubishi Motors Corporation (MMC) for 237 billion yen (R32 billion). Nissan will become the largest shareholder of MMC on closing the deal.
This comes after Mitsubishi’s admission a few weeks ago that it has falsified the economy of its minicars in Japan and as a result the companies value has dropped by 40%. This has also affected Nissan, as Mitsubishi have been making Nissan’s minicars since 2010. Sales of Nissan cars fell 22% in Japan last month.
Ghosn said, ‘This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors.’