Nissan Just Took Over Mitsubishi

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Nissan Just Took Over Mitsubishi

Nissan and Mitsubishi have officially joined forces to share technology, vehicle platforms and more.

These two Japanese automakers have signed a basic agreement to, according to the official press release, form a “far-reaching strategic alliance,” though they’ve already collaborated in various ways for five years.

The cornerstone of this business deal is Nissan taking a 34 percent equity stake in the triple-diamond brand, a move that’s valued at 237 billion yen, about $2.1 billion. This deal will make Nissan the largest shareholder in Mitsubishi Motors.

These automakers will partner in areas including purchasing, vehicle platforms, technology sharing and joint manufacturing-plant utilization, among other things. This union could dramatically reduce costs for both companies. Pressure from global competitors, government regulation, currency-exchange rates and an ever-escalating technology arms race are pushing car companies to the financial limit.

SEE ALSO: Japan’s Auto Industry Could Consolidate to Just Three Brands by 2021

This deal will be sealed when a definitive alliance agreement is signed, something that’s expected to take place by the end of this month.

Carlos Ghosn, president and CEO of Nissan called his latest conquest a “breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors.” However, time will tell if this is true.

Nissan has been tied-up with French automaker Renault for 17 years and that deal has borne limited fruit. It’s hard to imagine how a deal with Mitsubishi will help Nissan, especially given the former company’s disastrous position in North America.

Discuss this story on our Nissan Forum

  • Jacob

    TIL that buying 34% of something = Ownership. Thanks Autoguide!

  • Aquaflex

    Maybe Nissan will bring back the EVO!

  • Goran

    Great, all we need is for Mitsubishis to drive around with no DRLs.

  • Kevin

    maybe we can get a sentra ser spec v again or a hot hatch to compete with ford and subaru. give us something below a $45000 370z to have fun and row our own gears in nissan!

  • Kevin

    ok, and DRL do what to add to safety? i hardly even ever notice any car has or doesn’t have DRLs. DRLs usually run off the high beams at a lower power they aren’t meant to run at and kill them quicker costing you more. be alert and pay attention DRLs would and should not be needed if people put down the phone and quit distracting themselves behind the wheel then we would all be better off. hell a few years back i saw a lady holding a book against her steering wheel and reading. what went through her head to make her think that was ever a good idea? people are idiots and DRLs do nothing to change this.

  • Kevin

    or give us a sentra for car lovers with an evo power plant and no Crap Venting Transmission or CVT and let us row our own gears again. doing that is just too much fun.

  • Goran

    You mad bro?
    I’m making a joke because bunch of Nissans don’t have DRLs and since dashboards are kit up all the time there are bunch of Nissans driving at night with no lights at all.

  • smartacus

    how will this affect Datsun?

  • usmalefl

    Yes, that’s what we need….another cheap shitbox with a kiddie wing.

  • Alfonso C.J. Clark

    More Nissans with AWD…. MmmmmMaybe

  • Aquaflex

    Bring back the Nissan Silvia