BREAKING: Nissan In Talks To Take Over Mitsubishi Motors

Nissan Motor Co. may invest more than 200 billion yen ($1.84 billion) in a play to take over Mitsubishi Motors Corp., which has been battered by a scandal over falsified fuel-economy ratings, Japanese broadcaster NHK reported.

Nissan is in the final stage of talks to effectively acquire Mitsubishi Motors by taking a 34 percent stake, NHK said, citing a person familiar with the situation. Mitsubishi will probably issue new new shares to sell to Nissan in a private placement, Nikkei reported, adding that the automakers are expected to hold board meetings on Thursday to decide on the tie-up.

“There is a logic to Mitsubishi Motors needing a partner, since they clearly don’t have the engineering resources to be a player in a world where technology is moving so quickly,” said Maryann Keller, an independent auto analyst in Stamford, Connecticut. “They’ve always been an also-ran in major markets like the U.S. But they actually have a decent business in Southeast Asia, so they have some attractive assets.”

PUGPROUD - 5/11/2016 6:45:21 PM

+1 Boost

Only a good deal if Mitsubishi pays Nissan. No one knows the extent of the liability Mitsubishi faces after admitting that all its cars have fudged emission standards. In a deal like this (which I doubt ever takes place without Japanese government provisions to help Nissan) its not the price but the terms and conditions of sale that are important. Its all in the fine prints, representations and warranty terms.

ricks0me - 5/11/2016 6:53:18 PM

+1 Boost

Pugproud: Your comment is right on target

MDarringer - 5/11/2016 7:59:45 PM

+1 Boost

Nissan--that makes automotive turds second only to Mitsubishi--wants to buy Mitsubishi--that makes the king of automotive turds?

Maybe FCA isn't the stupidest automaker after all.