Nissan to take control of Mitsubishi following fuel economy scandal

[Gatsby]

If anyone is interested, it's officially on Mitsubishi's US website, under the newsroom section

NISSAN AND MITSUBISHI MOTRS FORGE STRATEGIC ALLIANCE – NISSAN TO TAKE 34% STAKE IN MITSUBISHI MOTORS FOR 237 BILLION YEN

[Daox]

Added the link to the press release.

[Zero]

The Renault-Nissan alliance was a "cross-shareholding agreement" and not consider a merger, but rather a partnership. The Nissan Mitsubishi situation appears to be the same unless Mitsubishi Group decides to sell Mitsubishi Motors. In any event, I believe the fuel economy scandal was timed/planned event to make it easier for Nissan to acquire the Mitsubishi shares.

[cyclopathic]

Another twist on the story:
http://www.wsj.com/articles/south-ko...ons-1463383054

South Korea on Monday said it would order Nissan Motor Co. to recall hundreds of its diesel-powered Qashqai sport-utility vehicles imported and sold in the country, saying a government investigation had found the model’s emissions tests were rigged.

[MetroMPG]

Yikes.

[MetroMPG]

While Nissan isn’t doing anything dire like phasing out the Mitsubishi brand globally, Automotive News points out Nissan does not have a ton of incentive to get Mitsubishi squared away in America:

"With Nissan racing to build its own U.S. market share and struggling to get enough factory capacity to supply its own retailers, the prospect of pausing to help build up a Japanese-brand competitor looks like an unlikely move as the companies sketch out their plans."

Nissan's chief says plans for North & South America "have absolutely not been touched."

Automotive News says, "the prospect of pausing to help build up a Japanese-brand competitor (in the U.S.) looks like an unlikely move"

Jalopnik: Mitsubishi's U.S. Future Is Murky Even With Nissan's Backing

AN: What's in it for Mitsubishi? For paltry U.S. operation, upside of Nissan deal is unclear

[flotownj]

If Nissan drops Mitsubishi in the U.S. they better be prepaired to cover my warranty!!!

[Eggman]

Opinion. Worth the price paid.

Time will tell.

[man114]

If Nissan drops Mitsubishi in the U.S. they better be prepaired to cover my warranty!!!

I doubt they'll drop out at least not if sales continue to go up, at least in the immediate term, since this seems to be a cross sharing agreement more than anything. I'm sure that the G4 will be popular for the rental car agencies and with the factory in the Philippines able to produce in quantity it doesn't seem like the time to back out especially if the North American uptick helps offset Japanese sales numbers. If they round out the lineup and can get back to numbers from a decade ago they could be quite profitable.

[inuvik]

I doubt they'll drop out at least not if sales continue to go up, at least in the immediate term, since this seems to be a cross sharing agreement more than anything. I'm sure that the G4 will be popular for the rental car agencies and with the factory in the Philippines able to produce in quantity it doesn't seem like the time to back out especially if the North American uptick helps offset Japanese sales numbers. If they round out the lineup and can get back to numbers from a decade ago they could be quite profitable.

I agree because although Nissan does get 1/3 of the board seats for it's investment Mitsubishi Corporate still maintains ownership. Their 34% allows them to place board members on the board. That doesn't mean that Mitsubishi Corporate can just blow them off either, it's enough power and control to guide the ship, but not enough to decide the destination.