Nissan acquires 34% Mitsubishi stake
Nissan Motor Co Ltd has acquired a 34% stake in Mitsubishi Motors Corporation (MMC) making it the largest shareholder in the operation.
As part of Nissan’s strategic investment, MMC will become a full member of the 17-year strong global alliance between Nissan and Renault – paving the way for synergies to enhance profit margins and earnings per share.
Nissan chairman and chief executive officer, Carlos Ghosn announced that Nissan and MMC would collaborate on joint purchasing, deeper localisation, joint plant utilization, common vehicle platforms, technology-sharing and an expansion of the companies’ combined presence in both developed and emerging markets.
‘The combination of Nissan, Mitsubishi Motors and Renault will create a new force in global car-making,’ said Ghosn. ‘It will be one of the world’s three largest automotive groups, with the economies of scale, breakthrough technologies and manufacturing capabilities to produce vehicles to serve customer demand in every market segment and in every geographic market around the world.’
Nissan chairman and chief executive officer, Carlos Ghosn has been nominated to become chairman of the board of MMC. Ghosn will be joined by three other Nissan nominated directors, including Mitsuhiko Yamashita, Nissan’s former executive vice president of research and development, who joined MMC earlier this year as head of development. The other nominees are Hitoshi Kawaguchi, Nissan chief sustainability officer and head of global external affairs, and Hiroshi Karube, Nissan global controller and global asset manager.
MMC President and Chief Executive Officer Osamu Masuko requested that Nissan also provide a senior executive to join the company’s executive committee to bolster MMC’s management. Trevor Mann, currently chief performance officer of Nissan, will become chief operating officer of MMC.
Ghosn said, ‘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.’
Nissan acquired the shareholding for 237bn JPY.