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Old 12th May 2016, 07:33   #1
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Default Nissan to buy 34% stake in Mitsubishi Motors

Nissan Motor Co and Mitsubishi Motors Corp confirmed they are discussing a possible capital tie-up

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Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided
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the carmakers were in advanced negotiations over a deal that would see Nissan invest about $1.8 billion to buy a third of Mitsubishi, which is embroiled in a fuel-economy scandal
If the 200 billion yen deal goes through, Nissan, Japan's second-largest automaker by sales, would become the largest single shareholder of much smaller Mitsubishi Motors.

The deal would give Nissan a bigger stake in Mitsubishi than its 15 percent holding in alliance partner Renault. The French automaker holds a 43.4 percent stake in Nissan.
Nissan to buy 34% stake in Mitsubishi Motors-m.jpg

There is a logic to Mitsubishi Motors needing a partner, since they clearly don’t have the engineering resources to be a player in a world where technology is moving so quickly. This is where collaboration with Nissan could be fruitful.


http://www.reuters.com/article/us-ni...-idUSKCN0Y227F

Last edited by volkman10 : 12th May 2016 at 07:47.
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Old 12th May 2016, 11:56   #2
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Default re: Nissan to buy 34% stake in Mitsubishi Motors

Analysts said a tie-up would give Nissan access to Mitsubishi’s strong foothold in Southeast Asia and some key technology, including hybrids and minicars, which are hugely popular in Japan.

The move would also help drive Nissan CEO Carlos Ghosn’s long-held target of running one of the world’s top three auto groups.

“Nissan has been less than perfect in emerging markets (such as Thailand, Indonesia, India) but Mitsubishi’s brand there is very strong.”

A tie-up would also be cheaper for Nissan since Mitsubishi shares have plunged by about 40% since the scandal broke.

Mitsubishi sold about one million vehicles globally last year, making it one of the smallest among Japan’s eight major automakers, also including Honda, Suzuki and Mazda.

The combined sales of Nissan, its French partner Renault, and Mitsubishi would top 9.5 million units annually.

That is not far behind the 10.15 million sold last year by Toyota, the world’s top automaker, and 9.9 million shifted by German giant Volkswagen.

Article: http://www.hindustantimes.com/busine...6IJorHWxO.html
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Old 12th May 2016, 13:33   #3
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Default re: Nissan to buy 34% stake in Mitsubishi Motors

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Nissan to take 34% stake in Mitsubishi Motors.

Nissan Buys $2.2 Billion Stake in Scandal-Hit Mitsubishi Motors. The purchase is poised to vault Nissan past Mitsubishi group companies to become Mitsubishi Motors’ single-largest shareholder.


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Carlos Ghosn, Nissan chief executive, said that Nissan will take the third in its rival to become the largest shareholder.
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The companies said they plan to sign an agreement by May 25 in which Nissan can name four directors to Mitsubishi Motors’ board. A Nissan-appointed director can also be named chairman of Mitsubishi Motors, according to the filing. The deal will be invalid if not completed within a year.

http://www.bloomberg.com/news/articl...hit-mitsubishi

Last edited by volkman10 : 12th May 2016 at 13:44.
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Old 13th May 2016, 11:29   #4
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

I still cant get my head over the valuation of Mitsubishi motors, guess Tata's paid similar money for both JLR's 100% share.

Anyway i am hoping to see more Mitsubishi's getting assembled in Nissan's huge underutilized factory in Chennai and utilizing their sales and service network as well.
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Old 13th May 2016, 14:09   #5
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

The Renault-Nissan Alliance brands taken together sold over 8.5 million vehicles globally during calendar year 2015. This put the Alliance in a distant fourth place (after the big three - Toyota, Volkswagen and GM) globally, but quite a way ahead of fifth placed Hyundai-Kia (8 million vehicles in 2015).

Mitsubishi sold over 1.2 million vehicles worldwide in 2015.

If Mitsubishi is clubbed with Renault-Nissan, the big three global manufacturers club would turn into a big four club. The top five global manufacturers list would then look like this:

Toyota Motor Corporation ~ 10.1 million units

Volkswagen Group ~ 9.9 million units

General Motors Company ~ 9.8 million units

Renault-Nissan Alliance + Mitsubishi ~ 9.7 million units

Hyundai Motor Group ~ 8.0 million units

Clearly, taking Mitsubishi on board would turn the Renault-Nissan Alliance into a huge worry for groups like General Motors and Volkswagen. The magical 10 million vehicles a year mark and long-time numero uno Toyota are not that far off either.

Monsieur Carlos Ghosn surely knows how to play his cards!

The Japanese would be quite relieved and pleased to let Nissan take control of Mitsubishi, instead of some foreign manufacturer (it was bad enough that Daimler took control of Mitsubishi Fuso).

On another note, I expect more such consolidation among Japanese companies in several sectors in the future. As a country, Japan will surely learn to "manage" their slow decline, so to speak. If persistent economic stagnation and long-term population decline was not enough, the horrendous Fukushima nuclear catastrophe (which was shamelessly covered up by a despicable Tepco, a lying government & the vile international nuclear mafia along with their pathetic stooges in the world mainstream media) is going to have a terrible effect on Japan in the future. Fukushima will affect Japan harder than Chernobyl affected Ukraine & Belarus in the long term. Faced with unenviable long term realities for their country, Japanese companies across sectors will learn to consolidate and co-operate more closely than ever before. It's the only way forward for them and for Japan. I wish them good luck!

Last edited by RSR : 13th May 2016 at 14:15.
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Old 13th May 2016, 14:34   #6
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

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Originally Posted by RSR View Post
On another note, I expect more such consolidation among Japanese companies in several sectors in the future. As a country, Japan will surely learn to "manage" their slow decline, so to speak.
Consolidation ahead for Japan autos is speculated to happen by 2021.

Japan, the world's third-largest economy is also the world's third-largest vehicle producer, boasting at least eight leading brands, including the world's biggest-selling automaker Toyota Motor.

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But the industry, once a shining example of the country's economic heft, has had a dismal run of late. Profits at Toyota have slumped while Mitsubishi Motors has been ensnared in a fuel-economy scandal. Even suppliers haven't been spared: Airbag maker Takata reported its third net loss in the past four years on Thursday following a massive recall.
With future of electromobility and heavy R&D expenditure consolidation over the next five years down to three to four major players as opposed to so many smaller players that Japan has have right now.

http://www.cnbc.com/2016/05/12/heavy...-earnings.html
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Old 19th May 2016, 13:57   #7
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

Mitsubishi confirms data manipulation for 5 more models.

Mitsubishi has confirmed fuel economy test data manipulation for five automobile models including the Pajero sport-utility vehicle, on top of the already confirmed four minivehicle models. The new names also included the RVR SUV, the Outlander PHEV plug-in hybrid, the Outlander gasoline version and the Delica D:5 minivan.

http://newsonjapan.com/html/newsdesk/article/116340.php
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Old 24th May 2016, 13:26   #8
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Default Nissan likely to send former tech chief to lead reform at Mitsubishi.

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Nissan Motor Co., which plans to spend $2.2 billion on a one-third controlling stake in Mitsubishi Motors Corp., aims to place its former global tech chief in charge of reform at its smaller rival, which is mired in a fuel economy data scandal.

According to two individuals with knowledge of the matter, Nissan and Mitsubishi are in final stage talks over an appointment of Mitsuhiko Yamashita as Mitsubishi's tech chief.

Yamashita was Nissan's executive vice president in charge of product and technology research and development until 2014, a position he had held since 2005.

The likely appointment of Yamashita as Mitsubishi tech chief, which might be finalized at an emergency board meeting at Mitsubishi on Wednesday, comes as part of Nissan's investment in the automaker.

With a 34-percent stake in Mitsubishi, Nissan will be able to nominate a third of the company's board.

Nissan CEO Carlos Ghosn has said he believed Mitsubishi would be led by a Nissan executive, prompting industry analysts and bankers to forecast a significant reshuffle at the top.
Automotive News

Last edited by Rehaan : 24th May 2016 at 16:20. Reason: PM coming up regarding copy-pasted content...
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Old 29th September 2016, 20:10   #9
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

Mitsubishi could have a portfolio for the Indian market via alliance!

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Carlos Ghosn hints at Mitsubishi's mass market entry strategy for India. Japanese brand will share Alliance platform!
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Old 30th September 2016, 10:16   #10
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

Renault-Nissan, Mitsubishi Join Hands To Develop Sub-Duster Crossover.

With more affordable SUV-ish cars now available the Duster is losing its steam in the Indian auto scene.

To give buyers a smaller and more affordable alternative to the Duster, Renault is developing a new crossover that will slide in below it.

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That's not all, as per the statement by Renault chief Carlos Ghosn at the ongoing Paris Motor Show, the Renault-Nissan-Mitsubishi alliance will work together to develop the offering.
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There's also the possibility of the model being a product of cross badging i.e. apart from being sold as a Renault, a mildly tweaked version could be sold with a Nissan or Mitsubishi badge. Both Japanese brands stand to gain a lot from retailing such a product in India, particularly Mitsubishi, whose presence is limited to the Pajero Sport and Montero.
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Old 30th September 2016, 10:28   #11
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

I would have loved Honda to take a stake in Mitsubishi motors and strengthen their portfolio !
Would have given some strength in the SUV area and diesel motors. I know Honda would love to be independent but they need to diversify a little bit.
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Old 19th October 2016, 14:02   #12
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

Nissan's Carlos Ghosn to head Mitsubishi Motors.

Ghosn-who is also head of French carmaker Renault will be officially appointed after a board meeting later this year.

Source

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Old 20th October 2016, 19:39   #13
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

Nissan officially acquires Mitsubishi, Ghosn becomes chairman.

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The Renault-Nissan Alliance can now officially count one more member because Mitsubishi Motors is finally a member in the partnership. As part of the $2.3 billion deal, Nissan gets a 34 percent stake in its Japanese rival. Carlos Ghosn will also become Chairman of the Board at Mitsubishi, which will fit well with his identical roles at Renault and Nissan.

The expanded Alliance will be one of the largest automotive groups in the world, with annual sales of 10 million units in fiscal year 2016
Source

Last edited by volkman10 : 20th October 2016 at 19:42.
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Old 21st October 2016, 19:25   #14
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Default Re: Nissan to buy 34% stake in Mitsubishi Motors

By adopting Mitsubishi into the family, Monsieur Ghosn has now strengthened the Renault-Nissan Alliance into a looming threat to the Big 3 (Toyota, VAG & GM). I wouldn't be that surprised if the Alliance headed by Ghosn manages to step on to the worldwide podium this year, as it was rather close last year (CY 2015) itself:

Toyota Motor Corporation ~ 10.1 million units

Volkswagen Group ~ 9.9 million units

General Motors Company ~ 9.8 million units

Renault-Nissan Alliance (including Mitsubishi) ~ 9.7 million units

Hyundai Motor Group ~ 8.0 million units

This might be just what the doctor ordered for ailing Mitsubishi! They can now re-build their rapidly shrinking line-up of cars by badge-engineering Alliance products to glory.

The newly unveiled fifth-generation Nissan Micra, for instance, can easily be badge-engineered and sold as the new Mitsubishi Colt. The new Micra's front grille appears a bit weird. The car would look better with a different face carrying the tripe-diamond logo.
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