After Nissan destapase irregularities in the consumption of some models by Mitsubishi in Japan, the actions of the brand of the three diamonds collapsed. That makes now Mitsubishi is in a weak position to face the consequences that this problem could lead to. Taking advantage of that weakness, Nissan could be done with an important part of the shareholders of Mitsubishi to half the price before the crisis, as the shares have lost 43% of its value.
Both brands have confirmed that are in negotiations, but there is still nothing decided. Sources speak that Nissan could be made with a 30% Mitsubishi, in the minor cases. With Nissan’s controlling party of the house of the three diamonds, it would be much easier to see possible relationships between the two marks, of which the two would be strengthened. Nissan will become the majority shareholder Mitsubishi.
Without Mitsubishi, Nissan should be looking for a new partner for the manufacture of kei-cars
With the purchase of shares by Nissan, Mitsubishi would receive a good injection of capital, in addition to the support of a manufacturer a lot more that would help him to clean up his image after the scandal. Mitsubishi could also benefit of some models of Nissan, which would be sold as products Mitsubishi. Some of these models may be intended for the u.s. market, where Mitsubishi is thriving gradually, but it needs a good push.
But Nissan could also take advantage of Mitsubishi. On the one hand could play more with the economies of scale sharing some models with Mitsubishi. For Nissan, the commercial network and the strength of Mitsubishi in southeast asia is also a portion very juicy pie.
in Addition, Mitsubishi is a strategic partner for Nissan, and it is that since they started to collaborate in 2010 with the kei-car, Nissan does not manufacture any model of this type for the domestic market japanese. Although the problems for Mitsubishi (splashing Nissan) have come from here, many opportunities are missed without the presence among the kei-car, which accounted for 40% of sales of cars in Japan.
Source – Europe Automotive News
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