Ghosn Signals “Massive” Plan for Mitsubishi Motors

Renault-Nissan CEO Carlos Ghosn says the two companies will unveil a “massive” business plan later this year to integrate Mitsubishi Motors Corp. into their alliance.

The plan will encompass integrated platforms, engineering, powertrains and purchasing, primarily between MMC and Nissan, he tells reporters.

In May Nissan agreed to spend 237 billion yen ($2.3 billion) to acquire newly issued shares and a 34% controlling stake in MMC. The move is giving Nissan four seats on MMC’s board and the power to install a new chairman for the troubled company.

The investment deal came a month after MMC admitted it falsified fuel economy ratings for four of its minivehicles, two of them rebadged as Nissan models, for 25 years. Since then the company revealed it had been miscalculating economy ratings for 20 models. The scandals followed cover-ups in 2000 and 2004 involving safety defects.

Ghosn says the three companies are working out details about the integration plan now. When it’s ready, he adds, he will announce the complete program in detail.