05-23-16

Nissan-Mitsubishi Partnership to Increase Companies’ Value

Nissan-Mitsubishi partnership

It is no secret that Mitsubishi has been having a problem lately. Once the news broke that it had been performing its own version of cheating by overinflating its tires during testing in Japan, its value has been in freefall.

So now, Nissan has come along to catch them. Nissan and Mitsubishi Motor Corporation have announced that they have created an agreement to create a long-reaching alliance, starting with Nissan picking up a 34% equity stake in Mitsubishi for 237 billion yen. This agreement builds on an existing collaborative partnership where the two companies have cooperated for the last 5 years.

This share buy will make Nissan Mitsubishi’s largest shareholder, and will lead to an agreement for the two companies to cooperate in purchasing, sharing vehicle platforms, sharing technology, sharing production plants, and in sharing growth markets.

CEOs of both companies were very excited by the Nissan-Mitsubishi partnership, with Nissan’s Carlos Ghosn calling the deal a “win-win for both Nissan and Mitsubishi Motors” and a “dynamic new force in the automotive industry.” Mitsubishi’s Osamu Masuko said that “This agreement will create long-term value needed for our two companies to progress towards the future. We will achieve long term value through deepening our strategic partnership including sharing resources such as development, as well as joint procurement.”