Nissan pays $2.2b for 34% stake in Mitsubishi

[wemay]

http://www.autoblog.com/2016/05/12/nissan-buys-stake-mitsubishi-report/


After news that Mitsubishi falsified its fuel economy data on every vehicle it has sold in Japan since 1991, and the tumble in the company's value that followed, the troubled carmaker has an unlikely savior. Today, Nissan has confirmed it will purchase over one third of Mitsubishi's stock, or 34 percent. The stake is valued at $2.2 billion.

Nissan is a natural partner for Mitsubishi, and since the fuel economy scandal escalated from discrepancies in the data regarding Mitsubishi-manufactured, Nissan-badged Japan-market vehicles, it makes sense for the company to sweep in and save the day. Nissan itself is partially owned by Renault, and Nissan has a 15 percent stake in the French automaker.

Mitsubishi's chairman, Osamu Masuko says that the merger was inevitable, that it "would have happened one day" anyway, according to the New York Times. Carlos Ghosn, chairman of both Nissan and Renault, is confident they will be able to turn Mitsubishi's fortunes around. "We have the track record to make it work", Ghosn said, referring to the Renault-funded rescue of Nissan in the early 2000s. Ghosn says making Mitsubishi a part of the Renault-Nissan alliance will save billions in development costs.

 

[KrisZ]

Grab your proper Mitsu's while you can...

 

[OneEyeJack]

It's just business and politics. For you and me it's straight to jail for the same kind of stuff. The game is rigged.

 

[RationalRussian]

Originally Posted By: OneEyeJack
It's just business and politics. For you and me it's straight to jail for the same kind of stuff. The game is rigged.


Very true

 

[Vern_in_IL]

Rigged and ILLEGAL.

This is Collusion.

Nissan called them out, stock falls, and then buys Mitsubishi Motors stock?

 

[dparm]

Commenters on The Truth About Cars made some good observations:


1. If Nissan rebrands Mitsus, it'll end badly for them

2. If Mitsu rebrands Nissans, it could go very well

3. Everyone who has partnered with Mitsu in the past has regretted it later

4. FCA missed an opportunity here for subcompacts, something they have outright said they are lacking

 

[OneEyeJack]

Is anyone planning on purchasing or leasing either one of these brands? If so, can you be sure of what you're getting?

 

[mcgophers]

Originally Posted By: OneEyeJack
Is anyone planning on purchasing or leasing either one of these brands? If so, can you be sure of what you're getting?


I looked at a 15 and 16 Sentra earlier tonight and liked them enough that I may buy one.

 

[asand1]

FWIW my 96 Nissan has many Mitsubishi parts OEM.

 

[Andrew1972]

Two car companies I would never consider new or used now combing efforts. Most unappealing products...

 

[pbm]

There's an old saying about 'judging somebody by the company they keep'....Nissan is involved with Renault and now Mitsubishi....enough said....

 

[MaximaGuy]

Nissan products already suck, now how in the world ar they going to make Mitsui better when they make unappealing products, wonder how these cross ownership a work.

 

[HTSS_TR]

Originally Posted By: dparm
Commenters on The Truth About Cars made some good observations:

1. If Nissan rebrands Mitsus, it'll end badly for them

2. If Mitsu rebrands Nissans, it could go very well

3. Everyone who has partnered with Mitsu in the past has regretted it later

4. FCA missed an opportunity here for subcompacts, something they have outright said they are lacking


Originally Posted By: automobilemag.com
Hyundai: from borrowing engines from Mitsubishi to providing them for Mercedes-Benz

Hyundai’s first car was the 1975 Pony (which, incidentally, was designed by Giugiaro), and through the 1980s Hyundai licensed designs from Mitsubishi to build cars. Hyundai did not build its own engine until 1991.


http://www.automobilemag.com/news/hyundai-engines

 

[DoubleWasp]

The last Renault Alliance to be seen in America was a real POS.

Three car companies I would never buy anything from.

About as good of an idea as Peugot, Renault, and Volvo getting together to make a V6 engine.

 

[HTSS_TR]

Peugeot and Renault can't survive in US, Volvo could not stand on its feet had to sell to Chinese. This tell you how good the 3 musketeers are.

 

[VNTS]

Originally Posted By: Vern_in_IL
Rigged and ILLEGAL.

This is Collusion.

Nissan called them out, stock falls, and then buys Mitsubishi Motors stock?


yes, glad you noticed. I wonder if the Gov in Japan will look into that, Mitsu stock holders should file a suit.

Both make junk in my opinion, cant think of any model either make that I would want.

All the Mitsu dealers near me are out of business.

 

[MaximaGuy]

Hyundai has come a long way in building decent, stylish, appealing and moderately reliable autos, I am seriously considering one. Hard work is what has bought them to be a player in this crowded segment.

 

[Sayjac]

Clearly Ghosn thinks a lot of himself. But speaking from personal experience with an 03 2.5L Altima, if the Renault alliance does for Mitsu what it's done for Nissan.....

 

[Tdbo]

Originally Posted By: HTSS_TR
Peugeot and Renault can't survive in US, Volvo could not stand on its feet had to sell to Chinese. This tell you how good the 3 musketeers are.


Volvo sold out to Ford.
Ford sold to the Chinese.

 

[zzyzzx]

Originally Posted By: madRiver
Two car companies I would never consider new or used now combing efforts. Most unappealing products...


I agree with the above comment. A mid-tier car company buys a bottom of the barrel car company. What could possibly go wrong???