Nissan Buys Mitsubishi 34% controlling Stake as the company was about to go down hill after fuel economy cheating was detected by Nissan itself
It is something that went according to plan when it comes to these two Japanese manufacturers. Both struggling in India and doing not super well worldwide were caught in a bit of hotch-potch. After Nissan asked Mitsubishi how they got so much efficiency from the Kei cars that they made and wasn’t seen on their machines. Mitsubishi said it was quoting fuel efficiency numbers wrongly and now after a brief rumor of just a day or two, Nissan made it official that they are buying controlling stake in Mitsubishi.
Stocks of Nissan and Mitsubishi rose highers because this blessing in disguise for both companies is humongous. Both companies joined together can finally target the likes of Toyota, GM and Volkswagen when it comes to selling cars worldwide and finally reach 10 million a year. Mitsubishi scam is limited to home ground Japan where it sells these cars and the number of 3 million cars is smaller than the recent scam of Volkswagen which has seen 11 million cars affected. There are many car manufacturer who are seen reporting one scam or the other. Honda was affected by their supplier of airbags, VW and entire group was caught in emission scandal.
Nissan Buys Mitsubishi is something to look forward to as Nissan says it will partner in every possible way to churn out new cars on same platform which could mean more profits, sales and exciting new cars. It is expected that Nissan will some day buy entire controlling stake of Mitsubishi and completely take over the company as it is set to happen in phased manner over the next couple of years. There are endless possibilities from the partnership which happens at a time when the iron is hot and we could see some dramatic results such as new and interesting products and may be sports car too!