Nissan Comes To The Rescue And Takes Over Control Of Mitsubishi

Nissan Motor Co. will invest 237 billion yen ($2.2 billion) to take a controlling 34 percent stake in Mitsubishi Motors.

The purchase is poised to vault Nissan past Mitsubishi group companies to become Mitsubishi Motors’ single-largest shareholder.

The companies today said they plan to sign an agreement by May 25 in which Nissan can name four directors to Mitsubishi Motors’ board. A Nissan-appointed director can also be named chairman of Mitsubishi Motors, according to a filing today. The deal will be invalid if not completed within a year.

Nissan is riding to Mitsubishi’s rescue after it called out Mitsubishi for cheating on emissions tests, plunging its close partner into crisis and uncertainty about its very viability.

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skytop - 5/12/2016 8:39:19 AM

0 Boost

Hopefully, Nissan management, engineering and capital infusion will resuscitate Mitsubishi.

xjug1987a - 5/12/2016 9:45:19 AM

0 Boost

I don't see any reason Nissan should or would do this? Mitsu has been in the states since what 1980 and the Koreans got here about 5-9yrs later. Who has been better managed or which has executed a better business model? Mitsu probably sells fewer cars today than it did in 1986 and the range is smaller and the quality and design, ehh at best... I don't see it. Finally Datsun as a brand prior to the name switch to Nissan had a terrific reputation for high quality, well engineered, inexpensive, small cars ideally the Datsun 510. Nothing Mitsu makes comes close today. Clearly the Mitsu 3000 (Dodge Stealth) were glimpses, but can they recover? I don't see it...

Agent009 - 5/12/2016 2:28:51 PM

+2 Boost

It is the Asian markets where Mitsu has a very strong presence. Nissan sees that as a gold mine.

But Mitsu also doesn't have the resources to face the consequences of the 25 years of cheating. They have to do this or go under in a sea of litigation.

MDarringer - 5/12/2016 7:28:31 PM

-1 Boost

A maker of shitty cars taking over a maker of even shittier cars. #CLUSTER...

MBguy - 5/12/2016 9:20:02 PM

+1 Boost

All Hail 'Nissubishi!'

nguyenvuminh - 5/13/2016 1:10:29 AM

+1 Boost

"A maker of shitty cars taking over a maker of even shittier cars. #CLUSTER..." I know, I know. That FCA company just blows my mind.