Last week, when the French political class was offended by the size of the salary Renault Carlos Ghosn, CEO of Nissan negotiated in the greatest secrecy, Japan, the takeover of Mitsubishi Motors. A few days earlier, he had seen in the trials of the sixth Japanese manufacturer whose stock value has shrunk by over 40% since the revelation of performance tampering, a unique opportunity to perform at prices sold off, a giant in its draft propel the Renault-Nissan alliance in the very exclusive club of global auto giants.
And on Thursday, the ambitious leader announced that Nissan planned to spend 237 billion yen ($ 1.9 billion) to take control of 34% of Mitsubishi Motors. “The cumulative sales of Nissan, Renault, Avtovaz and Mitsubishi, we are now at 10 million vehicles” , triumphed Carlos Ghosn, while affirming that this symbolic volume reached up here only by Toyota, Volkswagen and General Motors, “was not a goal,” and “consequence” the attractiveness force of the Franco-Japanese alliance and a response to the relentless consolidation in the auto industry.
Identity Preserved Mitsubishi
Under the terms of the agreement, which will be validated at the Following a “due diligence” for several weeks, Nissan will acquire 506,600,000 new shares issued by Mitsubishi and thus emerge as the largest shareholder of the manufacturer with which he had hitherto concluded that some industrial collaborations. With a capacity of veto on all strategic decisions, the group pledged to work with large current shareholders, mostly from the galaxy of Mitsubishi Group, to redress the reputation and growth of the manufacturer.
“We believe they have a strong growth potential and we can help them attain” , summarized the boss, anticipating lot of positive synergies for Nissan. “There are segments where they are better than us” , he said, citing the strong presence of Mitsubishi pick-up in Southeast Asia and expertise in the “kei cars” sector, these mini-cars to the engine capacity less than 660 cm 3 which capture 38% of demand in units in Japan. “these potential partnerships are well worth an investment of 237 billion yen “, ruled Carlos Ghosn, who promised to preserve the identity and autonomy of Mitsubishi
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the boss on the spot
It is precisely this commitment that would won the leadership of Mitsubishi Motors. “Nissan and Renault have the experience of an alliance where each brand is respected” , insisted Osamu Masuko, President of Mitsubishi Motors, who said he planned a merger with a major manufacturer even before see his group splashed fixing scandal consumer tests. “things have accelerated with the recent crisis” , admitted the leader, is said on the spot.
the head of Mitsubishi Motors says it has discovered in April that some of its engineers had deliberately faked, for decades, fuel consumption performance in terms of its vehicles products in Japan for its brand and under contract for Nissan.
If this cheating, that would have overstated by 5% or 10% the displayed energy performance cars, is not dangerous for drivers, it may cause in the coming months, a wave of legal actions against the group and bully its financial balance.
Nissan in great shape but delayed
the Japanese manufacturer has identified profit (34.6%) and sales (+ 2%) record last year, but still down compared to its objectives. Compared to its big Japanese competitor Toyota, Nissan still manages to boost sales, despite a sluggish global demand. On the period of April 2015 to March 2016, it sold 5.42 million units. But he should be penalized over the coming quarters by negative currency effects of the yen, as all Japanese groups. It also reduced its market share and operating margin objectives for next year
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. Nissan in great shape but delayed
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