The Renault-Nissan combine is on the verge of a $2.2 billion worth deal with Mitsubishi to acquire 34 percent stake in the Japanese company. This might have a massive impact on all the three automakers.
At the 2016 Paris Motor Show, Renault-Nissan chief executive Carlos Ghosn said that he expects authorities to approve the multi-billion acquisition soon. When the acquisition is approved, clear details will be announced by the alliance about what they are going to do together.
He said, that this alliance is not just about making the deal and later on think what they need to do together. The day they announce it will be clear and will reveal the exactly what they are going to do together.
Ghosn went on to say that it will be ‘massive' not just for Nissan and Mitsubishi, it will be significant for Renault and Mitsubishi.
There were no details of the ‘massive' deal, however, the three companies will be linked in management, vehicle development, research and development, and purchasing.
Ghosn said, that there are a lot of synergies with Mitsubishi and strategically the alliance have a lot of connection. Recently, the European Commission has approved the acquisition, with this alliance, Nissan will become one of the firm's largest single shareholder.
After the fuel economy scandal which rocked Mitsubishi, Nissan which makes vehicles in partnership along with it had vehicles under its badge affected as well.
As for the scandal, Mitsubishi admitted that it had provided false fuel economy data on nearly 13 different models manufactured since 1991. The scandal on affected cars was in Japan only and not in any other country.