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Under the deal, Head of Nissan Carlos Ghosn will head board of directors of MMC, which will include three more representatives of the largest shareholder. Trevor Mann appointed by Nissan will take over as Chief Operating Officer of MMC.
Reports of both companies stated that their cooperation should provide a synergistic effect profitable for both partners. The cooperation will save approximately ¥ 24 billion ($ 231.24 million) in 2017 fiscal year. In subsequent years, the synergy should increase annual revenue of both companies to ¥ 60 billion ($ 578 million).
The new alliance will be applied to procurements, joint platforms, production, technology development and cost reduction targets. Nissan will also share its experience of administration and governance to help restore confidence in the Mitsubishi brand. Nissan is the second in sales among Japanese manufacturers, Mitsubishi Motors - sixth.
Nissan will become the largest owner of the rival company, notes the WSJ. When Nissan receives more than a third in Mitsubishi, by Japanese law it will have veto power in making significant decisions regarding the company. The publication said that the whole transaction will entail a restructuring in the automobile market of Japan, where eight automakers are operating now. The deal will give Nissan a chance to expand its presence in some Asian markets, where its cars are poorly represented. As of Mitsubishi, which has a good position in Asia, it will be able to obtain advantages by increasing share of Nissan in North America.
April 20, Mitsubishi Motors acknowledged that its employees understated data on fuel consumption of cars. Alleged non-compliance and actual fuel consumption figures have been found by Nissan, which orders production of small cars from Mitsubishi, the company said. Then, Mitsubishi Motors admitted that incorrect calculation of fuel consumption has been in practice during 25 years.
Nissan and Mitsubishi Motors has a joint venture NMKV, which develops minicars under the brands of the two companies. Now, the parties are going to expand the current partnership, Nissan said. Sales of these models were suspended in late April after beginning of the scandal with fraud on fuel consumption data. Mitsubishi said on May 11 that the company wants to maintain cooperation with Nissan, and has enough cash to cover costs associated with the scandal with fraud data on fuel consumption. At the same time, Mitsubishi has said it will not seek help from Mitsubishi Group - Mitsubishi Heavy Industries and Mitsubishi.
Cooperation with Mitsubishi on development and production of minicars is very important for Nissan, as this segment accounts for about 40% of sales in the local market. Nissan refused its own minicar business machines in favor of joint venture with Mitsubishi in 2010.
source: wsj.com
Reports of both companies stated that their cooperation should provide a synergistic effect profitable for both partners. The cooperation will save approximately ¥ 24 billion ($ 231.24 million) in 2017 fiscal year. In subsequent years, the synergy should increase annual revenue of both companies to ¥ 60 billion ($ 578 million).
The new alliance will be applied to procurements, joint platforms, production, technology development and cost reduction targets. Nissan will also share its experience of administration and governance to help restore confidence in the Mitsubishi brand. Nissan is the second in sales among Japanese manufacturers, Mitsubishi Motors - sixth.
Nissan will become the largest owner of the rival company, notes the WSJ. When Nissan receives more than a third in Mitsubishi, by Japanese law it will have veto power in making significant decisions regarding the company. The publication said that the whole transaction will entail a restructuring in the automobile market of Japan, where eight automakers are operating now. The deal will give Nissan a chance to expand its presence in some Asian markets, where its cars are poorly represented. As of Mitsubishi, which has a good position in Asia, it will be able to obtain advantages by increasing share of Nissan in North America.
April 20, Mitsubishi Motors acknowledged that its employees understated data on fuel consumption of cars. Alleged non-compliance and actual fuel consumption figures have been found by Nissan, which orders production of small cars from Mitsubishi, the company said. Then, Mitsubishi Motors admitted that incorrect calculation of fuel consumption has been in practice during 25 years.
Nissan and Mitsubishi Motors has a joint venture NMKV, which develops minicars under the brands of the two companies. Now, the parties are going to expand the current partnership, Nissan said. Sales of these models were suspended in late April after beginning of the scandal with fraud on fuel consumption data. Mitsubishi said on May 11 that the company wants to maintain cooperation with Nissan, and has enough cash to cover costs associated with the scandal with fraud data on fuel consumption. At the same time, Mitsubishi has said it will not seek help from Mitsubishi Group - Mitsubishi Heavy Industries and Mitsubishi.
Cooperation with Mitsubishi on development and production of minicars is very important for Nissan, as this segment accounts for about 40% of sales in the local market. Nissan refused its own minicar business machines in favor of joint venture with Mitsubishi in 2010.
source: wsj.com
