Nissan Motor Co. is spending $2.2 billion to take a 34% stake in scandal-ridden Mitsubishi Motors Corp.Nissan Chief Carlos Ghosn said was “a win-win” deal that aims to repeat the success of his Nissan-Renault alliance.
Nissan Chief Carlos Ghosn said the investment was “a win-win” deal that aims to repeat the success of his Nissan-Renault alliance.
Ghosn appeared with Mitsubishi Motors Chairman Osamu Masuko on Thursday in Yokohama, where Nissan is headquartered.
The $2.2 billion investment will make Nissan the top investor in Mitsubishi Motors.
Mitsubishi group companies — Mitsubishi Heavy Industries, trading company Mitsubishi Corp. and the Bank of Tokyo-Mitsubishi UFJ — will continue to hold stakes in the automaker.
The investment comes at a time when Mitsubishi is dealing with a scandal in Japan. The company has admitted to lying about fuel mileage capabilities on dozens of different vehicles. Officials say the cheating scandal dates back upwards of 25 years.
“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,” said Ghosn.
The automakers will maintain separate identities, brands, and dealerships, Ghosn said.
With Mitsubishi struggling there couldn’t be a better leader than Ghosn. He is largely credited with helping Nissan stave off bankruptcy while making brutal cuts that made the vehicle manufacturer much more efficient.