Mitsubishi Motors Corp. is facing a tough time in several markets. The Japanese-based automobile manufacturer has recently confirmed that they had falsified fuel-economy ratings. Sales of Mitsubishi products have decreased tremendously globally.
Reports now suggest that Nissan Motor Co. could provide a helping a hand. Nissan could take over Mitsubishi in an attempt to revive the ailing Japanese brand. Mitsubishi is most likely to issue new shares in a private placement for Nissan.
Sales and order for Mitsubishi vehicles have halved owing to the false mileage scandal. Nissan too has been affected by this row as two of their products were sold under a partnership with Mitsubishi. The issue came out with Mitsubishi's mini car and revealed a similar fate of nine other models.
The deal between Nissan and Mitsubishi is expected to be somewhere in the 200 billion Yen ballpark. Nissan would have a bigger stake in Mitsubishi, compared to its 15 percent holding with Renault. Currently, Renault has a 43.4 percent stake in Nissan Motor Co.
Compensation to Mitsubishi vehicle owners has been announced. Mitsubishi will have to cough up USD 1 million for extra fuel, taxes, and false reports to Nissan and its vehicle customers. Stay tuned for more updates and reports on Mitsubishi and Nissan partnership.