It’s finally taking place. The reported merger between Renault-Nissan and Mitsubishi Motors Corporation (MMC) has become a reality. Earlier today, Nissan Chairman and Chief Executive Officer Carlos Ghosn announced that his company acquired a 34% stake in its Japanese counterpart.
The move will see the car companies collaborate in such areas as more localization, joint purchasing, joint plant utilization, technology transfer and collaboration, and vehicle platform sharing. The new alliance will likewise strengthen the three brands’ presence in developed, as well as emerging regions. In fact, the three car marques will soon rank among the top three automotive groups in the world, with combined sales of 10 million units in 2016.
It will be recalled that talks of the possible joint venture between Nissan and Mitsubishi began when MMC President and Chief Executive Officer Osamu Masuko sought the help of Nissan in the recent fuel economy scandal that both companies were involved in. Their kei cars were at the center of the storm. To cut a long story short, four of Nissan’s officials now sit in the MMC board. These include Mr Ghosn as Chairman-elect.
It should be interesting to see what the fruits of this marriage will be. The world will definitely be watching.
