Nissan pays $2.2b for 34% stake in Mitsubishi

[supton]

Ward's

Didn't realize JATCO was Nissan, much less a collaboration:
Quote:

But even before working together on minis, the automakers joined forces in 2002 when they merged part of their transmission operations to form JATCO, now the world’s No.1 manufacturer of CVTs. Nissan holds a 75% equity stake in JATCO with Mitsubishi and Suzuki, Japan’s largest manufacturer of minicars, owning the rest.


Anyhow, the numbers:

Quote:
In the fiscal year ending March 31, Mitsubishi reported record profits of ¥138.4 billion ($1.3 billion) with ¥462.4 billion ($4.3 billion) in cash on hand, likely more than enough to cover any financial losses from the fuel-economy-cheating scandal. When DaimlerChrysler announced plans to withdraw its equity holdings in spring 2004, Mitsubishi carried a debt load of ¥1.5 trillion ($13 billion).

Nissan is paying only ¥237 billion ($2.2 billion) for its 34% stake in Mitsubishi. Three weeks ago, the asking price would have been nearly ¥413.8 billion ($4 billion). On April 19, the day before the mileage scandal broke, Mitsubishi was trading at ¥864 ($7.94) per share. On Tuesday, its share price had fallen to ¥495 ($4.55).

 

[Nate1979]

The decision to invest in Mitsubishi would have not been decided over night. Many many months and long before the mpg scandal.

 

[Jetronic]

My guess is they decided to bring the scandal to light before the deal was finalized.

 

[GiveMeAVowel]

Originally Posted By: Jetronic
My guess is they decided to bring the scandal to light before the deal was finalized.


You can be sure all of these things were hashed out many months before any hint of this deal ever was made public. The elite brass tacks that work in these businesses are cunning, savvy and often times mild sociopaths with makes them ruthless, and successful in this arena unfortunately it also creates a poor work environment for rank and file employees, and gives customers the short shrift.

 

[SkyActivG]

Both makes are throw away cars. Nissan has proven to be unable to provide anything innovative in comparison to its Japanese competitors. Mitsubishi should have been left to die, because yet again their drive trains are extremely outdated. I'd really like to see what's in store for the Nissumishi alliance. Nissan is also very dated with it's unreliable VQ 6 cylinder and the QR that replaced the reliable KA is a piece of JUNK. The CVT's from JATCO are also JUNK, so what does Nissan have in their arsenal to bolster themselves and Mitsubishi. NOTHING!