Nissan-Mitsubishi Merger Ruled Out by Chairman Carlos Ghosn

Nissan-Mitsubishi Merger Ruled Out

A full merger ruled out as the chairman expects Mitsubishi to reform by itself but cross manufacturing is on the pipeline if necessary

Carlos Ghosn, the Chairman of Mitsubishi Motors Corp (MMC) and Nissan Motor Co Ltd said in a statement on Tuesday that both companies won’t be involved in a full merger with each other. It contradicts the reports surfaced on the internet that Nissan and Renault will help Mitsubishi in recovering from losses with probable badge engineering products and using their expertise in emerging countries.

Ghosn told Reuters that they want “Mitsubishi to reform itself” and there is no “full” merger on the table. He spoke of this matter when attending the inauguration of Mitsubishi’s new production facility in Indonesia. However, he has admitted that both the Japanese manufacturers will be involved in cross manufacturing if necessary and when it makes sense.

Mitsubishi Intros Eclipse Cross at Geneva

Nissan purchased controlling stakes in Mitsubishi for $2.3 billion following the infamous mileage test cheating scandal last year. They were assessing the joint manufacturing of utility and lifestyle pickup trucks in Southeastern part of Asia where Mitsubishi established itself so well. With it, they targeted profits conceded the chief operating officer of Mitsubishi to the same publication last month.

Carlos Ghosn, who is also chairman of Renault, now said that Mitsubishi has its own ways of doing things. In the next three years, the Japanese brand’s CEO Osamu Masuko predicted an increase of 4 percent market share from current 6 percent in the Indonesian market earlier. This year though he estimated a massive growth of 40 percent in sales in Indonesia due to the surge in MPV sales.

Mitsubishi Grand Lancer

In recent times, Indonesia has emerged as the automotive leader by getting past Thailand. As per the report from Association of Indonesia Automotive Industries (Gaikindo), just over one million vehicles were retailed in the country. Mitsubishi has some way to go to become the market leader in the highly promising market.

With an extensive band of dealership, Toyota has been the leader for a long time in partnership with PT Astra International Tbk, the country’s largest distributor. Nissan’s strategic alliance in terms of production and other marketing ways could play a pivotal role in Mitsubishi closing the gap to Toyota.
Source: Reuters