Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but there’s nothing more momentous than this. At least for the whole 2016. From what we can recall, the last time we heard something like this has occurred, was in 2014. That was after Chrysler was bought out by Fiat Automobiles. But that’s a different story.
Mitsubishi, as we know, has had a very difficult year following reports of the cheating scandal. Oh wait, you haven’t heard about that yet? Well, Mitsubishi got itself screwed up after it was revealed that most of its vehicles (marketed for Japan) cheated on emissions test ratings. Sadly, they had been lying about their cars’ fuel efficiency, and that went on for twenty-five long years.
Now it seems as if Nissan felt really bad for Mitsubishi, but that may not be the case. It has been five months since the buy off was initiated and only became official recently. Technically speaking, Nissan now owns thirty four percent of Mitsubishi. That only means that Nissan also gets the upper hand over Mitsubishi Motors. You’d think 34% is too little, but according to Japanese corporate law, that percentage is enough to make things go their way. Besides, it costs 237 billion Yen (or equivalent to $184 billion).
Nevertheless, we see a win-win situation here. Mitsubishi could be an important asset to the Renault-Nissan Alliance, considering Mitsubishi’s yearly 10M vehicles sales volume. Given that, those figures could also mean additional sales for Nissan. At this time, the Renault-Nissan ranks number 3 when it comes to the biggest car manufacturers worldwide, taking over the place of General Motors. Toyota and Volkswagen are still leading the race but that could change any day.
Aside from this, the tie up could also mean sharing the same facilities and innovations. Nissan and Renault have shared human resources, purchasing, logistics, manufacturing and engineering facilities since 2014. The alliance is looking to save as much as 5.5 billion euros due to this and will probably get all settled by 2018. Also, about 70% of their cars are expected to be using the same platforms by year 2020.
Mitsubishi has already developed some exceptional plug-in hybrid technologies that for sure would be an advantage. In other words, Nissan doesn’t need to go back to square one when designing Infiniti’s PHEV device (just in case they want to consider this, right)? Until then, it’s going to be interesting to see how things would go from here.