Mitsubishi-Nissan Deal Could Help Both Automakers

Mitsubishi-Nissan Deal

It’s no secret that Mitsubishi is a much smaller automaker than big-time competitors like Nissan, but a new deal could change all that. Nissan has agreed to take a 34% stake in Mitsubishi amid the smaller automaker’s most recent scandal. While the deal may seem one-sided at first, both companies could benefit greatly from the latest Mitsubishi-Nissan deal.

Mitsubishi and Nissan already develop and manufacture products thanks to a 2011 partnership. That deal doesn’t include any shareholding but the new deal does. Under the idea of regaining the public’s trust, Mitsubishi sold Nissan $2.2 billion worth of shares, allowing Japan’s second-largest automaker to take the wheel.

Under the new deal, Nissan effectively bails out Mitsubishi and can elect up to one-third of the board. They also gain new access to other Asian markets, like China, where Mitsubishi vehicles are incredibly popular. The two will also jointly develop new technology as well.

In return, Mitsubishi, which posted its first loss in years just a few weeks ago, received enough money to compensate customers. By giving Nissan at 34% stake, Mitsubishi also joins the Nissan-Renault alliance. Nissan holds a 15% stake in the French automaker while Renault has a 43% stake in Nissan.

Here at Coronet Mitsubishi, we can’t wait to see what comes of the new deal!

Mitsubishi-Nissan Deal

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