Renault-Nissan’s Carlos Ghosn to be Mitsubishi Motors’ Chairman as the alliance is expected to have massive plans for the Japanese automaker
Renault-Nissan boss Carlos Ghosn is all set to become the chairman of Mitsubishi Motors. The Renault-Nissan alliance is taking over Mitsubishi Motors after the company faced financial trouble. Nissan already has a long-standing relationship with Mitsubishi, and with the absorption of Mitsubishi by the alliance Nissan has big plans for Mitsubishi.
Earlier this year Mitsubishi admitted that, they have falsified the fuel economy data in several cars, which resulted its President Mr. Tetsuro Aikawa resigning from his post. As an aftermath of the scam, Mitsubishi faced serious managerial and financial trouble. Renault-Nissan alliance came forward during this crisis period and gave the Japanese company a lifeline.
Also read: Renault-Nissan Alliance Teasing Massive Plans For Mitsubishi
Nissan announced it will buy one-third stake in Mitsubishi for $2.2 billion. At 2016 Paris Motor Show Mr. Carlos Ghosn said, the deal will be massive between Nissan and Mitsubishi, and it could also be a massive deal between Renault and Mitsubishi. Now, with Mr. Ghosn becoming chairman of Mitsubishi, reports also suggest that present President Mr. Osamu Masuko will remain in his position.
Carlos Ghosn is known for his able leadership and bringing back Nissan from near bankruptcy in late 1990s. Now he is being given responsibility to bring back fortune to Mitsubishi Motors. After Mitsubishi’s absorption into Renault-Nissan alliance the companies can help each other on automotive technologies, share platforms and components as well.
Also read: Mitsubishi Could See Direct Investment in India due to Nissan Takeover
In India too, Mitsubishi could seen good fortune with this absorption. Despite being a long-standing player in Indian market Mitsubishi couldn’t repeat its past success in India. On the other hand Renault has a stronghold in Indian market with cars like Duster, Kwid. In near future, we can expect Mitsubishi to launch some new models in Indian market, and with Renault-Nissan already have its manufacturing plant in Orgadam in Tamil Nadu the cars will use higher localization in production.
Source: ET Auto