What was first considered a rumor is now officially true. The Renault-Nissan Alliance has gained control over Mitsubishi, in amove that might seem suspect for those who remember that Nissan was the fire starter in Mitsubishi fuel efficiency scandal.
Mitsubishi announces that Nissan Motor has become its largest shareholder after completing the purchase of 34% of MMC-issued stock.
As part of Nissan’s strategic investment, Mitsubishi will become a full member of the 17-year strong global alliance between Nissan and Renault. This means synergies and more money.
Nissan Chairman and Chief Executive Officer Carlos Ghosn has been nominated to become chairman of the Board. 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 Mitsubishi 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.
The three largest institutional shareholders in Mitsubishi are: Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo-Mitsubishi UFJ. Moving forward, these three Mitsubishi institutional shareholders together with Nissan will maintain a more than 51 percent of the share capital.
Nissan and MMC will begin cooperating on a wide-ranging synergy program, building on a five-year alliance in minicars between the two companies.
The two companies have identified a number of synergies in areas including:
– Joint purchasing cost-reduction
– Deeper localization in operations around the world
– Joint plant utilization
– Common vehicle platforms
– Technology sharing
– Cooperation in emerging and developed markets; and
– The use of the Nissan Sales Finance Company to serve MMC customers in any market where mutually beneficial.
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 characterized our alliance with Renault for 17 years. I am confident this will benefit all stakeholders."