Renault-Nissan Takes Over Mitsubishi Motors
The Renault-Nissan Alliance has now completed a $2.29 billion acquisition of a 34-percent controlling interest in Mitsubishi Motors Corporation that it announced in May. As a result of the takeover, Nissan Chairman and CEO Carlos Ghosn also assumes the post of Mitsubishi chairman, an automaker that’s been reeling since last spring as the result of a long-term fuel-economy ratings scandal involving vehicles sold in Japan. Ghosn, who brought the once-struggling Nissan back from the brink in 1999 when it was acquired by Renault, is confident that Mitsubishi can undergo a similar renaissance. "We are committed to assisting Mitsubishi Motors as it rebuilds customer trust," said Ghosn. "This is a priority as we pursue the synergies and growth potential of our enlarged relationship."
Ghosn added that "The combination of Nissan, Mitsubishi Motors and Renault will create a new force in global car-making. It will be one of the world's three largest automotive groups, with the economies of scale, breakthrough technologies and manufacturing capabilities to produce vehicles to serve customer demand in every market segment and in every geographic market around the world." As part of the deal, MMC’s Osamu Masuko relinquishes his CEO post but remains as president.
According to Ghosn, Nissan and MMC will collaborate in a host of areas, including joint purchasing and plant utilization, common vehicle platforms and technology-sharing to enable cost savings while expanding their combined presence in both developed and emerging markets. He anticipates the addition of MMC will move the expanded Alliance into a position to realize a combined sales volume of 10 million units in fiscal 2016.