October 21, 2016 @ 06:54 PM

Nissan acquires Mitsubishi

A 34 per cent stake makes Nissan the largest shareholder in Mitsubishi with Ghosn to lead its board

Nissan Motor has concluded its acquisition of a 34 per cent stake in Mitsubishi Motors Corporation (MMC) to become the latter’s largest shareholder and will see Nissan’s president and chief executive officer; Carlos Ghosn, taking over the MMC board as chairman-elect.

The move now makes MMC a part of the Renault-Nissan Alliance and slingshots them into ahead as one of the automotive world’s big-three with combined sales in the region of 10 million units for 2016. Prior to this, Nissan and MMC had collaborated for the last five years on kei-cars for the Japanese market.

MMC found itself in hot water earlier in the year as regulators become aware that it had released inaccurate official fuel consumption figures that saw the automaker’s stock plummet.

Following the move to acquire a controlling stake in MMC, Nissan has nominated four representatives to sit on the board of MMC, including Ghosn as the chairman-elect. One of his first moves was to propose a management shake-up that would see Renault-Nissan Alliance personnel taking over crucial decision-making positions in MMC. The proposal has already been accepted by the board and will come into effect 1 November 2016.

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