Nissan Motor Co., Ltd. (Nissan) has officially completed acquisition of their 34% stake in Mitsubishi Motors (MMC), making it the largest shareholder of the company. This comes only five months after making the formal announcement in May this year.
The acquisition allows MMC to become part of Nissan’s global alliance with Renault. Thus, the new trio will find themselves in the world’s top three automotive groups in terms of global volumes (with sales of 10 million units over fiscal year 2016), joining Toyota and General Motors.
Nissan Chairman and Chief Executive Officer Carlos Ghosn announced that Nissan and MMC will collaborate on joint purchasing, deeper localization, common vehicle platforms, joint plant utilization, as well as technology sharing. That said, both brands will expand their combined presence in both developed and emerging markets.
Ghosn revealed one of these models to be a rebadged Nissan minivan sourced from Mitsubishi to be sold in Southeast Asia and making Mitsubishi's plug-in hybrid (PHEV) system Alliance standard.
"The combination of Nissan, Mitsubishi Motors and Renault will create a new force in global car-making," said Ghosn. "It will be one of the world's three largest automotive groups, with the economies of scale, breakthrough technologies and manufacturing capabilities to produce vehicles to serve customer demand in every market segment and in every geographic market around the world."
In order to pull their strategy off, Nissan have elected four representatives to the board of MMC – with Ghosn taking the helm as chairman-elect.
The other nominees are Hitoshi Kawaguchi, chief sustainability officer and head of global external affairs; Hiroshi Karube, global controller and global asset manager; and Mitsuhiko Yamashita, Nissan's current representative on the Mitsubishi Motors board.
This setup, along with a host of management changes effective November 1st, will allow Ghosn to assist Osamu Masuko, MMC’s president and CEO, while fulfilling responsibilities for Nissan.