Nissan purchases 34% of Mitsubishi Motors

Ever since Mitsubishi announced that it made up fuel economy data on every individual vehicle manufactured and sol in Japan since 1991, the firm’s shares have fallen, and everything looked set for a total collapse. This is where the Renault-Nissan group comes into play. The chairman of the companies, Carlos Ghosn, announced that the cooperation will splash US$2.2billion to purchase 34% of the company. Despite being significantly smaller than either Renault and Nissan, the firms believe that Mitsubishi is a valuable add to their portfolio, for Nissan and Mitsubishi have done badge engineering projects with each other’ s cars before. The union should also see the companies save billions in developmental costs.