Mitsubishi Motors (MMC) needs Nissan to gear up its falling market reputation. Nissan has bought 34% equity stake in Mitsubishi Motors costing about $2.3 billion, becoming the largest shareholder in Mitsubishi. Also MMC President and Chief Executive Officer, Osamu Masuko requested that Nissan also provide a senior executive to join the company’s executive committee to bolster MMC’s management.
So is this a drive of technology from Nissan to Mitsubishi only?
No, Mitsubishi no matter expecting a colossal loss of around £1.5bn in 2016, but has strength in plug-in hybrids. Whereas, Nissan is ruling the world in EVs sales. So, we can expect upgradation in tech for both automobiles in coming years, said Masuko.
Moreover, Lancashire-born Trevor Mann, one of the first employees and Ghosn’s top for executives at Nissan will keep a day to day check at Mitsubishi.
Coordination among these car enterprises has mostly proved profitable. As when suffered stagnant innovation and financial losses, Renault proved to be the long term partner. The alliance strategy is expected to deliver the same lifeline to Mitsubishi Motors.
