Nissan to acquire 34% stake in scandal-hit Mitsubishi Motors

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Added in: Mitsubishi

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The Godzilla maker is all geared up to bite a big chunk off the Evo maker and become the controlling shareholder of the company. Nissan will ink a deal with Mitsubishi to acquire 34% stakes in their company. Recently, officials of Mitsubishi Motors confessed to a have manipulated fuel-economy test data to falsify claims of almost 6,00,000 vehicles , including over 150,000 of its own light passenger cars and around 4,50,000 vehicles produced for Nissan.

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This is not the first time for Mitsubishi to be involved in scandals, but reports suggest that the Japanese company will not be able to survive the latest one. The calculated compensations and the fall of more than 40% in share value will jolt the company top to bottom. Therefore to set things straight, Mitsubishi is reported to sell a stake of about 237.4 billion yen ($2.2 billion) to Nissan. Post the deal Nissan will become the single largest shareholder of the Mitsubishi Motors.

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Mitsubishi and Nissan have been working together for a long time now. The former has been producing vehicles for the latter and as mentioned, around 4,50,000 vehicles made for Nissan are involved in the fuel efficiency scandal. The investigations post the scandal inferred that Nissan had no involvement in manipulating the fuel efficiency figures of the affected vehicles. The deal will be a win-win situation for both the companies especially Mitsubishi. It will difficult for the automaker to reinstate trust of their partners, associates, and customers, but this deal will at least help them compensate for the damages.

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