To raging river, gain of fishermen: Nissan acquired 34% of Mitsubishi in trouble

I love the Spanish proverb. Every life situation has its proverb corresponding to it, and even the movements of the automotive industry have a place. What’s the story of what comes the proverb of the title? To Nissan has recently acquired 34% of the shares of Mitsubishi, becoming the main majority shareholder of the japanese company. Evil tongues say that the recent fraud of consumption approved by Mitsubishi in Japan would have had something to do in this financial maneuvers. There is a lot to read between the lines about this maneuver master of enterprise control.

Mitsubishi joins effectively to the huge network automobile built by the Renault-Nissan alliance.

A financial maneuvers that seems straight out of a master class of Gordon Gecko, protagonist of the thriller financial “Wall Street” (1987). But let’s get the facts before you. Nissan and Carlos Ghosn have announced that they will invest 237.000 billion yen in Mitsubishi Motors Corporation. About 2,000 million euros, which will be effectively 34% of the shares of the company. Nissan will appoint four directors on its Board of Directors and there will be a greater quantity of productive synergies.

Nissan will be able to use the productive capacities of Mitsubishi – and vice versa – and both companies will share platforms and development costs. On paper, everything is very nice. Adds a mark to the giant network of strategic alliances and partnerships that is Renault-Nissan, which also has ties with Daimler and AutoVAZ, to name two examples. It is necessary to return to the scandal of Mitsubishi in order to understand the manoeuvre of purchase from Nissan. Distorted consumption approved of kei cars for years and years.

by Increasing the pressure of his tyres, managed to inflate numbers up by 10%. These kei cars were made in collaboration with Nissan, and precisely was Nissan which warned the authorities that there was something suspicious in the consumption of such small cars. The accusation of Nissan finished for uncovering the fraud, that collapsed the stock market listing of the shares of Mitsubishi. Shortly after, Nissan acquired 34% of Mitsubishi price of knockdown, solves their problems and benefits from their developments.

a maneuver Is perfect. Although sales of Mitsubishi not impressed in Europe or north America, yes they are very important in the asian markets, especially southeast. It is in these markets where Nissan has not achieved the desired success, and power. to use the huge distribution network of Mitsubishi in the area could turn the tortilla. In addition, the scandal of the consumption approved is limited only to Japan, limiting their overall exposure to the effects and legal and financial.

As such, a maneuver master.

Source: Nissan