The even larger Renault-Nissan Aliiance will build over 10 million vehicles a year.
The Renault-Nissan Alliance can now officially count one more member because Mitsubishi Motors is finally a member in the partnership. As part of the $2.3 billion deal, Nissan gets a 34 percent stake in its Japanese rival. Carlos Ghosn will also become Chairman of the Board at Mitsubishi, which will fit well with his identical roles at Renault and Nissan.
“The expanded Alliance will be one of the largest automotive groups in the world, with annual sales of 10 million units in fiscal year 2016,” Ghosn said in the announcement that officially confirmed the deal.
The partnership will mean access to new resources for Mitsubishi Motors. The Alliance’s brands have the advantage of cost reductions by purchasing materials together, sharing factories, and joint technology development. Down the road, look for Mitsubishi to use the same vehicle platforms as the other members, too. According to Automotive News Europe, Mitsubishi’s plug-in hybrid system will arrive in vehicles from the other brands.
In addition to Ghosn’s role as chairman, three other Nissan employees will join Mitsubishi Motor’s board, according to Automotive News Europe. Trevor Mann will also become Mitsubishi’s Chief Operating Officer by moving from his current position as Chief Performance Officer of Nissan. Mitsubishi CEO Osamu Masuko will remain in that position.
Nissan and Mitsubishi Motors initially announced this partnership in May, and they’ve spent the last several months ironing out the details. The motivation for the purchase came in April when Mitsubishi admitted that it falsified fuel economy data for some minicars in Japan. Later, the company confessed the cheating went back to 1991. The scandal caused the stock to plunge, and Nissan was an obvious ally because the two automakers already had an alliance for supplying these tiny vehicles.
The new cooperation could be what Mitsubishi Motors needs to accelerate growth in the U.S because Nissan’s deeper pockets might allow bringing some fresh products. The automaker has been showing strength in America recently. For example, sales in 2015 were up 22.8 percent. Through September 2016, deliveries have nudged up 1.5 percent.
Source: Mitsubishi, Automotive News Europe