Mitsubishi is Now Officially a Part of the Renault-Nissan Alliance
Published November 11, 2016
What’s been known for some time now has finally become official. Nissan has acquired 34% of Mitsubishi’s stakes, hence effectively converting its Japanese rival into its own asset. Mitsubishi thus becomes the youngest partner in already huge Renault-Nissan Alliance which currently produces around 9 million vehicles a year making it world’s fourth biggest carmaker. With Mitsubishi’s addition, annual sales for 2016 fiscal year should soar to 10 million units. That should put Renault-Nissan Alliance straight at the top where they’re supposed to be tied with Toyota.
$2.3 billion deal ensures that the upcoming fresh Mitsubishi’s portfolio of cars will pass through the French-Japanese dealership web from now on. Although Mitsubishi hasn’t been as popular as it used to, lately, we’ll fondly remember some of their best models and secretly hope one or two might make a comeback.
Chairman of the Board at Mitsubishi is a position now occupied by none other than Carlos Ghosn. He’s been chairman and CEO at both Renault and Nissan thus far, so his naming to the same position at Mitsubishi hardly comes as a surprise. There’s one exception, though. Although becoming Chairman of the Board, CEO spot at Mitsubishi remains in Osamu Masuko’s hands who’s been handling Mitsubishi’s affairs since July, 2014. New Chief Operating Officer will be Trevor Mann who’s been Chief Performance Officer at Nissan until now.
So, what does this mean for Mitsubishi going forward, apart from the obvious? Well, for starters, they’ll finally have deep enough pockets to push those new models they’ve been trying to for these last few years. American market is supposed to feel the benefits of this acquisition the most. Then, there are operating cost reductions as Mitsubishi will be able to share platforms and acquire parts jointly with their new partners. Those were the main problems plaguing Mitsubishi, apart from the cheating fuel economy scandal which shook the company this spring. Hopefully they’ll soon be able to stand firmly on their own feat. After all, this is the only way we’ll be seeing the Mitsubishi Lancer Evolution comeback. No one wants to pay more than double the car’s intended price tag for the final edition.
Categories: Gear Grinding