Nissan Takes Mitsubishi Under Its Wing

Big news from the Japanese automotive market: this morning, Nissan announced they would invest 237 billion yen (27.9 billion $) in Mitsubishi. With this, Nissan will become Mitsubishi’s main owner with 34% of all shares.

Among the clause in the contract, there are some interesting notes: Nissan can name up to four members of the board, as well as a director for Mitsubishi Motors.

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According to Carlos Ghosn, Nissan’s CEO, this alliance will enable the two brands to share platforms, technologies and production costs. Nissan will also give Mitsubishi some needed advice for public relations, which the small automaker desperately needs.

Right now, the public opinion towards Mitsubishi is pretty low; a few weeks ago, it was revealed that they cheated their fuel consumption numbers in their home market by modifying the rolling resistance value (like tire pressure and aerodynamics).