Following announcements made in May this year, Nissan has finally acquired controlling stake in Mitsubishi Motors with a 237 billion yen ($2.29 billion) purchase. Nissan now commands 34% of Mitsubishi Motors. Additionally, Mitsubishi will be a part of the Renault-Nissan Alliance.
Gaining controlling interest in Mitsubishi Motors has seen an investment of $2 billion by Nissan. The Japanese automaker will retain Osamu Masuko as Mitsubishi’s President and CEO; even as there were rumors calling for his resignation following the Mitsubishi fuel economy scandal. While Carsol Ghosn will be the new Chairman, Nissan’s Mitsuhiko Yamashita, Hitoshi Kawaguchi and Hiroshi Karube will also be commanding board roles in the newly acquired company.
Mitsubishi admitted to tweaking data where fuel efficiency in its vehicles was concerned for over a quarter century. This, the company put down to pressure from various quarters and bad communication while Nissan plans on turning Mitsubishi around and enhance management systems.
The new alliance also sets targets on reducing costs which while grouping resources together will allow savings up to $230 million in the coming year which could increase to $577 million by 2018. Savings would be through joint manufacture, product sharing and combined purchase and other operations while Mitsubishi will tap into Nissan’s retail financing services overseas so as to boost sales.
For more details, below is the official news release and video.