Nissan Wants To Buy More Than 30% Of Mitsubishi Following Fuel Consumption Scandal

After Mitsubishi’s automotive division got battered over the fuel economy test rigging fiasco, the company’s future may be at stake, although it could still survive thanks to Nissan.

Bloomberg reports that Nissan Motor Co. may invest more than 200 billion yen ($1.84 billion) in an attempt to take over the company’s bleeding automotive arm, as the Yokohama-based car maker is reportedly in the final stages of talks to effectively buy a 34% stake of Mitsubishi Motors. This way, Nissan would become the top shareholder.

Last month, Mitsubishi announced that more than 600,000 of their cars have falsified fuel economy figures since 1991, by using a different method for Japan’s official “coasting test”. Moreover, Nissan uncovered the false data used in the fuel consumption trials, but despite all this, the aforementioned vehicle manufacturer still hopes to continue the partnership with Mitsubishi; possibly even tackling the electric car market.

This will allow Nissan to continue to sell re-badged Mitsubishi kei cars – which make almost 30% of its sales volume in Japan – and also tackle the electric niche in Asia where Mitsu has considerably more “brand power”.


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