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.
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Born and raised in metro Detroit, Craig was steeped in mechanics from childhood. He feels as much at home with a wrench or welding gun in his hand as he does behind the wheel or in front of a camera. Putting his Bachelor's Degree in Journalism to good use, he's always pumping out videos, reviews, and features for AutoGuide.com. When the workday is over, he can be found out driving his fully restored 1936 Ford V8 sedan. Craig has covered the automotive industry full time for more than 10 years and is a member of the Automotive Press Association (APA) and Midwest Automotive Media Association (MAMA).
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how will this affect Datsun?
More Nissans with AWD.... MmmmmMaybe