Well, here’s something that doesn’t happen every day. Nissan is taking on a 34% stake in Mitsubishi. Nissan and Mitsubishi are currently working on a joint project dubbed NMKV, an effort to build minicars together. Mitsubishi has been struggling, especially in the U.S. market, but still has a 60% share of the minicar market in Japan. This is an area where Nissan could really be benefited by this deal.
YOKOHAMA and TOKYO, Japan – Nissan Motor Co., Ltd. and Mitsubishi Motors Corporation announced that they have signed a Basic Agreement today to form a far-reaching strategic alliance between the two Japanese automakers.
Following an MMC share issue, Nissan will take a 34 percent equity stake in MMC for 237 billion yen.
The strategic alliance will extend an existing partnership between Nissan and MMC, under which the two companies have jointly collaborated for the past five years.
Nissan and MMC have agreed to cooperate in areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets.
Carlos Ghosn, chief executive and president of Nissan, said: “This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors. It creates a dynamic new force in the automotive industry that will cooperate intensively and generate sizeable synergies. We will be the largest shareholder of MMC, respecting their brand, their history and boosting their growth prospects. We will support MMC as they address their challenges and welcome them as the newest member of our enlarged Alliance family.”