Wheels are in motion for Japanese automaker Mitsubishi to be taken over by the Renault-Nissan Alliance by the end of this year, reports Automotive News.
Speaking at the Paris Motor Show, Renault-Nissan CEO Carlos Ghosn said “massive” plans will be announced.
He said: “This is not a deal where we say, ‘OK, we made the deal, now let’s think what we can do together’. No. The day we announce the deal, we’re going to tell you exactly what we’re going to do together. And it’s massive. It’s massive between Mitsubishi and Nissan. And also, it may be very significant between Renault and Mitsubishi.”
Nissan and Mitsubishi have a long-standing relationship, Mitsubishi building some Japanese-market Kei car models for Nissan. In April of this year, Mitsubishi admitted to falsifying fuel economy data which resulted in the company’s president, Tetsuro Aikawa, resigning. The managerial and financial mess that followed allowed Renault-Nissan to step in.
Pending legal and government approval, the $2.2 billion deal to acquire a 34 per cent stake in Mitsubishi is expected to go through before the end of this year.
The Renault-Nissan Alliance was formed 17 years ago when both companies were virtually on their knees. The French and Japanese sides collaborate on research and development, management, and purchasing. Ghosn intends to make Mitsubishi a partner in the alliance, rather than relegate it to being a mere brand.
“Mitsubishi in this case will join the alliance. The alliance is about developing synergy. We know that there are a lot of synergies with Mitsubishi and strategically we have a lot of connection.”
Exactly how the expanded alliance will operate in markets like the U.S., where Mitsubishi and Nissan compete directly, is still to be determined. “We will have to dig more in the U.S. But when you talk about purchasing, engineering, platforms, engines, plug-in hybrids - it’s massive.”
Source: Automotive News