Following an official announcement from Nissan in May regarding an alliance between itself and Mitsubishi Motors, the newly combined Japanese automakers have confirmed that Nissan has taken over a 34 percent equity stake in Mitsubishi.
Nissan and Mitsubishi have previously worked together on compact kei cars for the Japanese market, with Mitsubishi-built vehicles filling out the lower end of Nissan’s domestic range in Japan.
Earlier this year Mitsubishi Motors was found to have been misquoting fuel consumption figures for some of its Japanese models, with irregularities pick up by Nissan. Since that initial discovery additional misquoted models have also been discovered, sparking a fuel economy crisis for Mitsubishi.
At the request of Mitsubishi president and CEO Osamu Masuko, Nissan extended a lifeline to the embattled company to help it along.
Now, with the alliance deal complete Nissan and Renault CEO Carlos Ghosn will join the board of Mitsubishi Motors as chairman-elect, with three other Nissan executives nominated for positions on the Mitsubishi board.
"The combination of Nissan, Mitsubishi Motors and Renault will create a new force in global car-making," Carlos Ghosn said.
"It will be one of the world's three largest automotive groups, with the economies of scale, breakthrough technologies and manufacturing capabilities to produce vehicles to serve customer demand in every market segment and in every geographic market around the world."
Mr Ghosn also announced that the alliance will lead to purchasing synergies, shared platforms, new technological developments, and optimised production facilities, and though no express announcement as to which models and facilities could be shared, it gives Mitsubishi access to a range of platforms and technologies to replace its aging vehicle achitectures.
Nissan, and possibly Renault will also gain access to the emerging South East Asian markets where Mitsubishi enjoys a strong presence.