Is Nissan Unloading Mitsubishi?

Two years after the arrest of Carlos Ghosn over alleged financial misconduct, insiders at Nissan say discussions are underway which could re-shape the world’s biggest car alliance: the sale of some or all of the Japanese carmaker’s stake at Mitsubishi Motors.

According to a Bloomberg report (via Reuters), Nissan predicts that it’ll take longer for the company to recover from the pandemic-induced economic slowdown. With that, they are taking a broader review of their alliance with Renault and Mitsubishi, and that a sale of some or all of their 34 percent stake in Mitsubishi could be a first step.

Sources within Nissan say the carmaker may sell back its shares of Mitsubishi Motors back to one of the group’s companies such as Mitsubishi Corporation. Mitsubishi Corporation already owns 20 percent of Mitsubishi Motors.

While it may re-shape or severe Nissan’s capital ties with Mitsubishi, the alliance may remain intact, at least operationally without the shareholding. This opens the possibility of Nissan, Mitsubishi, and Renault to seek collaboration with other partners.

Both Nissan and Mitsubishi denied the report saying they are committed to the alliance.

It must be remembered that Nissan and Mitsubishi will synergize their global plans into a leader-follower scheme. Under this scheme, Nissan, Mitsubishi, and Renault will run on common platforms—around 80 percent of global products by 2024. This will allow them to deliver innovations to deal with larger forces sweeping the auto industry such as electric vehicles and autonomous driving technology.

Source: Car Guides PH