- Title: Nissan Motor to form business and capital alliance with Mitsubishi Motors
- Date: 12th May 2016
- Summary: YOKOHAMA, JAPAN (MAY 12, 2016) (REUTERS) **** WARNING CONTAINS FLASH PHOTOGRAPHY **** NISSAN MOTORS CEO, CARLOS GHOSN, AND MITSUBISHI MOTORS CEO, OSAMU MASUKO, WALKING INTO NEWS CONFERENCE (SOUNDBITE) (English) NISSAN MOTORS CEO, CARLOS GHOSN, SAYING: "Nissan will become the single largest shareholder in Mitsubishi Motors, and we will expand our existing partnership into new areas." PRESENTATION SHOWING NISSAN MOTORS AND MITSUBISHI MOTORS LOGOS (SOUNDBITE) (English) NISSAN MOTORS CEO, CARLOS GHOSN, SAYING: "At Nissan, we are determined to preserve and nurture the Mitsubishi Motors brand, and we will help this company address the challenges it faces particularly in restoring consumer trust in its fuel economy performance." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Japanese) MITSUBISHI MOTORS CEO, OSAMU MASUKO, SAYING: "I believe this capital alliance will be appreciated by the consumers, business partners, shareholders, employees, and every stake holder we worried." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Japanese) MITSUBISHI MOTORS CEO, OSAMU MASUKO, SAYING: "In overcoming the current issues regarding development, along with taking a new step forward, I believe this evolution in the alliance with Nissan Motors, which has been cultivated over the past five years, will become an effective weapon in sharpening our competitiveness." NEWS CONFERENCE IN PROGRESS GHOSN AND MASUKO SHAKING HANDS PHOTOGRAPHERS TAKING PICTURES OF GHOSN AND MASUKO SHAKING HANDS
- Embargoed: 27th May 2016 09:58
- Keywords: Nissan Mistubishi Carlos Ghosn scandal
- Location: YOKOHAMA AND TOKYO, JAPAN
- City: YOKOHAMA AND TOKYO, JAPAN
- Country: Japan
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0014HI49QD
- Aspect Ratio: 16:9
- Story Text: Nissan Motors on Thursday (May 12) announced it will take a controlling stake of scandal-ridden Mitsubishi Motors.
Nissan CEO Carlos Ghosn said his company will acquire a 34 percent stake, or 506.6 million shares via private placement plan of Mitsubishi Motors.
"Nissan will become the single largest shareholder in Mitsubishi Motors, and we will expand our existing partnership into new areas," Ghosn said.
"At Nissan, we are determined to preserve and nurture the Mitsubishi Motors brand, and we will help this company address the challenges it faces particularly in restoring consumer trust in its fuel economy performance," he added.
The capital alliance comes while Mitsubishi drowns in its third major scandal in under two decades after admitting it overstated the fuel economy of at least four of its models - mini cars sold in Japan, including two sold under Nissan's badge.
That admission has badly hit Mitsubishi, wiping $3 billion off its value and bruising a brand already losing market share.
Once the investment is completed, Nissan will become the largest single shareholder of much smaller Mitsubishi Motors, gaining a leg up in the domestic small car market - where it is dwarfed by Suzuki and Toyota's Daihatsu - and in key emerging economies.
For Mitsubishi, any deal will be about rebirth.
"I believe this capital alliance will be appreciated by the consumers, business partners, shareholders, employees, and every stake holder we worried," Mitsubishi Motors CEO Osamu Masuko said at the news conference.
The deal was welcomed by the Japanese government.
After Mitsubishi admitted last month to overstating the fuel economy of four of its mini-vehicle models, analysts estimate the automaker is facing up to $1 billion in compensation payments to its customers, along with payments to Nissan.
Mitsubishi halted production of the models in question last month. - Copyright Holder: REUTERS
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