When Nissan bought a majority stake in Mitsubishi a few years ago, it gave the latter a helpful boost. Since then, Mitsubishi enjoyed good sales and only slowed down this year due to the pandemic. At the same time, Nissan has the Diamond Star brand as their push for the Southeast Asia market.
So when rumors of the brands splitting came about, it raised a few eyebrows. Bloomberg reported Nissan is looking to sell its 34 percent stake in Mitsubishi as part of its recovery plan. With both brands suffering heavy losses this year, the item sounds believable. However, it sounds like a short-term solution when you look at the bigger picture.
Nissan agrees with that last bit because they quickly shot down the suggestion hours after it was published. They added that the two brands still have a lot of work together to achieve their long-term plans.
The majority shareholder was straightforward in the statement, saying, “Contrary to the assertions in the articles, there are no plans to change the capital structure with Mitsubishi. Like 'Nissan NEXT', we understand that Mitsubishi Motors is working on its 'Small but Beautiful' business transformation plan which it announced in July. Each Alliance partner needs to focus on its core competencies and maximize the use of each other’s assets to accomplish its midterm plans”.
With that, Nissan and Mitsubishi will continue working with each other for more years to come. Of course, the reason why these two automakers got together is to increase product and technology development efficiencies. Nissan and Mitsubishi are working together not only in developing and manufacturing Kei cars but also in adopting common platforms and powertrains.
Aside from that, there are a lot of all-new models in the pipeline from both automakers. Nissan is rolling out seven more models before mid-2021, and Mitsubishi has next-generation Xpander, Outlander, and Montero Sport. While the road is rocky for both at the moment, things are looking up for the two brands in the 2020s.