On May 12, Nissan explained to shareholders the reason for its capital alliance with Mitsubishi.
The reason for the tie-up was the issue of Mitsubishi’s inaccurate fuel economy data. Nissan says that in October 2015, Mitsubishi and Nissan’s joint venture NMKV carried out joint re-examinations under Nissan’s direction to check the fuel economy of current models for the development of a next-gen kei car. This reinvestigation resulted in the discovery of the inaccurate data.
Nissan explained, “Due to this situation, the relationship between Nissan and Mitsubishi, which has always been good, has taken a turn for the worst. There are now worries that this could have a negative impact on Mitsubishi’s business strategy.”
Nissan explained to stockholders the merits of a capital tie-up. “Through capital cooperation, Nissan and Mitsubishi can create a constructive affiliation in the mid-to-long-term.”
Furthermore, said Nissan, “If Mitsubishi becomes part of the Renault-Nissan Alliance, it is expected that we can significantly reestablish trust in Mitsubishi in terms of its earnings potential and future competitive power.”
(Translated by Greg Scott)