By on May 11, 2016

2017 Mitsubishi Outlander PHEV

Nissan Motor Company wants to buy a controlling stake in Mitsubishi Motors, according to a report by the Japanese broadcaster NHK.

The deal would see Nissan invest 200 billion yen ($1.84 billion) into the scandal-plagued automaker, giving Nissan control, Bloomberg reports.

The scandal came to a head recently, with Mitsubishi admitting it used American standard fuel economy testing for its Japanese market vehicles — a practice, performed since 1991, that left numerous models with unrealistic gas mileage ratings.

In many cases, a 10-percent difference existed between stated mileage and real-world results.

Two of the Japanese market vehicles fingered for mileage cheating were sold by Nissan through a partnership agreement. The two companies entered into a working relationship in 2010.

The scandal saw Mitsubishi’s share values plunge, while the Japanese government mulls heavy fines that analysts believe the automaker can cover without asking for help from companies within its corporate sphere.

While sales recently took a hit in its home country, Mitsubishi’s exports to other markets rose over the past two fiscal years. The gas mileage scandal only concerns home market vehicles, though the Environmental Protection Agency asked for, and got, proof of this claim from the company.

Get the latest TTAC e-Newsletter!

Recommended

42 Comments on “Nissan Wants to Take Control of Mitsubishi Motors: Report...”


  • avatar
    DeadWeight

    This makes total sense!

    I literally just posted this under another article in the comments section as THIS article was being posted:

    “Screw Nissan in the a$$.

    It’s an incompetent company producing mediocrity, at best, and absolute merde, at worst.

    It’s waning closer & closer to Mitsubishi, & further & further from its 1980s to very early 2000s maker relative good things with each passing year since.

    Nissan started to REALLY decline in approximately 2006.”

    • 0 avatar
      heavy handle

      Arguably before 2006. Two words would make a late 90’s Nissan owner cry uncontrollably: “coil pack.”

      You can get cheaper aftermarket ones now, but the OEM ones were eye-wateringly expensive ($600 each in Canada, and you needed 6).

      They usually failed the day after your warranty expired.

    • 0 avatar
      TOTitan

      DW normally I agree with you but not this time. Ive owned two Q45’s that both went well beyond 200,000 miles with no issues. In 04 I bought a Titan. Twelve years and 140K later I’ve changed the battery twice, done the brakes once, and replaced the tires twice. Thats it…no malfunctions or breakdowns of any type. The doors don’t sag, no squeaks or rattles, and the AC is still cold. Whats not to like?

      • 0 avatar
        DeadWeight

        There are exceptions.

        The Q45 was one of them.

        As were the M35 & M45 (I liked them; much better than ANY modern Acura sedan).

        The M37 is decent, too.

        Infiniti is now being ignored or systematically ruined, however. Their Q series are horrid vehicles.

        • 0 avatar
          SSJeep

          I always liked the j30 from the late 90s. What a cool car.

          • 0 avatar
            CoreyDL

            The J30 was indeed cool. But the build quality was just not there, and the interior (and trunk) was too compromised size-wise for the exterior.

        • 0 avatar
          CoreyDL

          Fortunately their larger vehicles are still their prior-Q format, with a name change. That won’t last long though, they’re all due for replacement within the next couple years.

          And the VQ series goes away too, replaced with the VE.

          AND they’re probably going to start sharing crap with Mercedes in Infiniti vehicles.

          Why do I suddenly get the feeling this will be my last Infiniti, and I’ll be switching back to Lexus?

    • 0 avatar
      thornmark

      Nissan: “we are the Borg, assimilate, resistance is futile”.

      Let them, two once good and now crap brands added together = one bigger crap brand. Makes shopping for their customers easier for them (Nissan) in their ever down-market move. BMW has been coveting Mitsu customers for how long now? Nissan should move fast.

      Why doesn’t Nissan eliminate the middlemen and simply open rental outlets at airports and showrooms at KMart.

      I usually subscribe to the idea that the more competition the better but when Nissan was saved from bankruptcy by the French guv through Renault it has not led to better product or a healthier market because Nissan’s products compete largely on price. It seems that Nissan’s relentless overproduction in its quest (sic) for market share has reduced profitability at companies that produce much better product to the detriment of the market and ultimately, consumers.

  • avatar

    Mitsubishi and Suzuki.

    Why do they even exist anymore?

    • 0 avatar
      Arthur Dailey

      Consumers in most nations of the world, where Mitsu and Suzuki are viable would probably say that of Chrysler.

    • 0 avatar
      DeadWeight

      Emerging markets, where their products should remain.

      I’m not trying to sound arrogant here, but both Suzuki & Mitsubishi would likely be far better off targeting nearly all their resources towards cleaner, better, affordable vehicles for the billions in India, China, Indonesia, Malaysia, Vietnam, Thailand, Africa (both sub-Saharan & MENA0, the Balkan region, and central and South America.

      In a somewhat ironic flipside, there actually may be a viable market case for Skoda and maybe even SEAT in many more developed nations given the massive, lighting speed wealth inequality quickly transforming many of those nations (which would give VW a new path towards generating much needed market share & revenue growth).

      • 0 avatar
        VoGo

        +1

      • 0 avatar
        Big Al from Oz

        DW,
        I do believe that Suzuki do make some nice small vehicles. As for Mitsubishi, I also do believe they are attempting to improve their vehicles.

        The problem is Mitsubishi, like Chrysler (FCA) have been focusing on the cheap end of the spectrum. They can’t compete with the likes of Toyota/Honda/Mazda, etc. This segment is just to full of competitive vehicle in that price bracket.

        Even when one looks at Hyundai/Kia you will find that they are still a cheaper option than the mainstay Japanese brands. It’s just damn hard to get a foothold and build a name for a value laden, reliable, quality vehicle.

        So, Chrysler/FCA and Mitsubishi are down the bottom of the rung for these middling vehicle brands.

        Chrysler/FCA and Mitsubishi are “almost there” vehicle manufacturers relying on pricing to win the day. But the pricing is affecting overall quality. For them to change will require a lot of work, with smaller profits (running at a loss).

      • 0 avatar
        dukeisduke

        Botswana sounds about right.

    • 0 avatar
      FormerFF

      Maruti Suzuki is a big player in India.

      It would make sense for some of the smaller automakers in Japan to merge with the larger ones, Japan has too many carmakers for a nation of its size and shrinking population.

      • 0 avatar
        28-Cars-Later

        I agree. I also think it depends on Nissan-Renault’s strategy for the Third World. Carlos was on record saying he believed the future for emerging markets was going to be electric vehicles. Mitsubishi is playing in the PHEV space and Nissan already offers the Leaf. Assuming Mitsubishi also offers an existing dealer/supply network in places Nissan doesn’t I see what Carlos might be thinking.

      • 0 avatar
        Mr. Orange

        Why?

        The Japanese car companies sell most of their vehicles overseas. A shrinking home market has been replaced with expanding exports overseas. For Toyota and Honda the United States are their most important markets.

    • 0 avatar
      Jacob

      In case of Suzuki, because they make cars well suited for emerging markets, Japan, etc. They just don’t have much to offer to the US consumer.

  • avatar
    28-Cars-Later

    Sergio kept talking about the need for consolidation, perhaps Carlos was of the same opinion.

    • 0 avatar
      heavy handle

      Of course Carlos wants more consolidation. He can’t live on just two CEO paychecks.

    • 0 avatar
      DeadWeight

      Report Sergio’s bluster & hubris, he is correct in stating that there are a lot of inefficient redundancies in the automotive product space that actually could be eliminated through more cooperation – even if this doesn’t necessarily entail outright mergers & acquisitions (e.g. cooperative development of major components).

      Of course, Sergio’s goal is to maximize profit to the manufacturers when he talks of this need, while I’m viewing it more as a means to lower consumer purchasing costs.

      (Maybe both goals could be realized?)

      • 0 avatar
        Lorenzo

        Sergio’s REAL goal is to offload Fiat’s accumulated debt to its merger partner, and give the controlling Agnelli family a profitable path out of the car business. The Agnellis already realized what Warren Buffett declared, that auto biz profit margins are too low (and too cyclical) for the amount of capital required.

        • 0 avatar
          28-Cars-Later

          I agree and have argued the same in the past. Trouble is though, who does want to be in the auto business given the low margins and big headaches?

  • avatar
    Truckducken

    Perfect fit. Each firm’s average customer has the same credit score.

  • avatar
    PrincipalDan

    If Mitsubishi’s became badge-engineered Nissans and Renaults – that would actually be a step up.

  • avatar
    Corollaman

    Maybe they can sell some Mitsubishi products under the Datsun name.

  • avatar
    Big Al from Oz

    Nissan and Mitsubishi have been model sharing in Asia and the Middle East/Arab countries for a number of years nows, over a decade??

    This is a common sense approach for Nissan to create a larger business. Even in Thailand the Triton and Navara are built on the same line. The Canter is also shared with Nissan. Cars are shared in Asia and the Middle East/Gulf countries.

    Nissan is also attempting to gain more independence from Renault for the past couple of years.

    A larger Nissan is a stronger business that will be able to beocome independent of Renault. Maybe this would provide Nissan enough firepower over the French.

  • avatar
    EAF

    Mitsu… bring back the Evo pls. :-(

  • avatar
    FromaBuick6

    Hopefully Nissan wants to take over so they can shut them down, at least in the U.S. After years of selling a lineup of uncompetitive, pathetic cars to the destitute and the clueless, with no improvement in sight, I’m convinced that Mitsubishi is never going to realize on their own that it’s time to pull chocks and go home

    Someone put them out of their misery, please. I’m tired their GS-platform junk continuing to pollute the marketplace.

  • avatar
    64andahalf

    This is a great idea for Nissan. Either Mitsubishi sells to Nissan at a relatively low price, or Nissan threatens to throw an army of lawyers at them to intentionally inflict financial and reputational pain. Maximum leverage…

  • avatar
    Fred

    “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…” so says Maryann Keller, an independent auto analyst

    So she thinks Nissan with Renault don’t have any engineering resources? And that Mitsubishi has $2billion worth? This makes no sense to me.

    • 0 avatar
      Lorenzo

      No, she thinks Mitsu doesn’t have the resources. The Mitsubishi Group is huge, but they’re all independent companies with no corporate parent, just small shares of each others’ stock and an informal group arrangement. The “Group” is more of a loose association than a real company, so Mitsu Motors is mostly on its own.

  • avatar
    gtluis

    The only Nissan that is worthy of attention for this guy is the Murano and that’s because it’s pleasing to the eye and that’s it. Also, go nissan.com and I’ve read enough to this point that this is not a company I’ll be doing business with anytime soon.

  • avatar
    Pch101

    Nissan and Mitsubishi already provide vehicles to each other. This sounds like Nissan’s way of trying to keep Mitsubishi afloat.

  • avatar
    Jeff S

    I hear Sergio knocking at Nissan’s door. How about Fiat, Nissan, Renault, and Mitsubishi global vehicles. A redesigned Chrysler 200 and Dodge Dart with design elements of the Cube and LeCar. Tata could make these new models in India.

  • avatar
    TonyJZX

    Nissan and Mitsubishi ride on SUVs and CUVs. Apparently Nissan do quite well in the UK and Spain and certain EU countries. Also the RU. Any country they have a plant. IMO Nissan and Mitsubishi are hopeless in the c-segment hatches and small sedans. Well behind the times. In fact they make what I call govt. cars. Small cheap base trim vehicles for social service employees to use.

    Mitsubishi do survive due to being part of the Mitsubishi group of companies and Nissan Renault are still a global force.

    I do wish these people would both concentrate on a decent small compact hatch and medium car. I think they have CUVs covered.

  • avatar
    TonyJZX

    One further thing. Nissan and Mitsu have some strengths as far as EV and hybrid goes. I think combined they would put up a decent fight.

    I mean they have it over Subaru and Mazda as far as electrons go and obviously electrons is the future.

  • avatar
    Lorenzo

    Two of the Mitsu vehicles caught in the “scandal” (using American EPA mileage calculation standards) were sold by Nissan, and now Nissan is taking advantage to buy a big chunk of Mitsu since its stock tanked. Aren’t there any conspiracy theorists here to connect some dots? Isn’t anybody going to comment on the report that those American-calculated mileage numbers were up to 10% higher than real world results? Our B&B are getting soft.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • bts: Why bother having a law against murder? Everyone knows it’s wrong, right? Then there would be no way to...
  • Yankee: Absolutely agree. Everyone thinks they need four-wheel-discs (just like they think they need...
  • jack4x: Yes because every salaried “management” employee is a fat cat with a vacation home and a big boat. Give me a...
  • Yankee: I’ve done the same and I share your concern. If the seat goes back far enough, you’re reaching...
  • Chris Chin: This was all that was available in the fleet at the time. Audi representatives reassured me that there...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Timothy Cain
  • Matthew Guy
  • Ronnie Schreiber
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth