Nissan Motor Co. has completed its acquisition of a 34 percent equity stake in Mitsubishi Motors (MMC) and became its largest shareholder. MMC will also become part of the global alliance with Nissan and Renault. Following the addition of MMC, the alliance will be in the world’s top three automotive groups by global volumes, with sales of 10 million units in fiscal year 2016.
Nissan chairman and CEO, Carlos Ghosn, announced that Nissan and MMC would collaborate on joint purchasing, deeper localisation, joint plant utilisation, 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, 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,” said Ghosn.
Nissan offered its assistance at the request of Osamu Masuko, president and CEO of MMC, following the company’s fuel economy crisis. The two companies have cooperated on kei cars for the Japanese market over the past five years.
“We are committed to assisting Mitsubishi Motors as it rebuilds customer trust. This is a priority as we pursue the synergies and growth potential of our enlarged relationship. I will support Masuko-san in executing the required transformation of Mitsubishi Motors and leading its smooth and necessary cooperation with its alliance partners,” added Ghosn.
Ghosn predicted that through its partnership with MMC, Nissan would target synergy benefits worth 24 billion yen in fiscal year 2017, rising to 60 billion yen in fiscal year 2018 and beyond.
Ghosn concluded: “At a time of unprecedented change in the global auto industry, this strategy will build on our existing strengths and management capabilities to ensure increased competitiveness, better products for our customers and attractive returns for shareholders.”