Can Mitsubishi's New Partners Really Save It?
Nissan has completed its acquisition of a 34-percent equity stake in Mitsubishi Motors, becoming its largest shareholder.
That means Mitsubishi will become part of the global Alliance with Nissan and Renault, helping the Alliance 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 also announced that Nissan and Mitsubishi will collaborate on joint purchasing, deeper localization, joint plant utilization, common vehicle platforms, technology sharing, and an expansion of the companies’ combined presence in both developed and emerging markets.
SEE ALSO: Nissan Just Took Over Mitsubishi
Nissan’s CEO predicted that through its partnership with Mitsubishi, the Japanese automaker would target benefits worth 24-billion yen ($231-million) in fiscal year 2017, rising to 60-billion yen ($577-million) in fiscal year 2018 and beyond.
Nissan and Mitsubishi have collaborated on kei-cars for the Japanese market over the past five years, and Mitsubishi president and CEO Osamu Masuko reached out to Nissan for assistance following the company’s fuel economy crisis.
Discuss this story on our Mitsubishi Forum
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
More by Jason Siu
Comments
Join the conversation
if Nissan brings over the Renault Twingo as a Mitsubishi Mirage, then yeah they might save it
Three awful, ugly, unreliable car brands become one. They better keep their prices low, it's not like they're going to be competing with Toyota on quality. Maybe they can hire some Chrysler auto stylists. They have done really well, making unreliable cars that look really nice.