Nissan, Mitsubishi part of alliance with Renault
Both automakers looking to return to profit
While news of the alliance being shaky isn’t new, this latest report is: Nissan is looking to sell some or all of its 34 percent stake in Mitsubishi Motors, says Bloomberg, a move that would make massive changes to the Nissan, Mitsubishi, Renault alliance.
The report says that Nissan is struggling from the pandemic-related economic downturn and is looking to sell the shares. Possibly to one of the other players in the Mitsubishi group like Mitsubishi Corp, which already owns a fifth of the automaker. Yes, that’s a bit confusing, but the group of companies bearing the name Mitsubishi were broken up in the 1940s and there are now dozens of different companies under the loose umbrella. Mitsubishi Corp is a company that deals largely in information technology, infrastructure, finance, and mining. Mitsubishi Motors was part of Mitsubishi Heavy Industry, another branch of the company.
A sale like this would massively change the partnership that was formed by former alliance chair Carlos Ghosn, the man who was CEO of Renault and became CEO of Nissan, and Chair of Mitsubishi before arrest and oustings in 2018 for alleged financial misconduct.
Nissan is 43 percent owned by Renault, and, the report says, recently cut its loss forecast by 28 percent. Mitsubishi Motors expects a loss of 140 billion yen (CAD 1.7B) and both are cutting costs to try and return to profitability.
Both Nissan and Mitsubishi Motors told Bloomberg in separate statements that there “are no plans to change the capital structure with Mitsubishi.”