Nissan Takes Control of Mitsubishi Motors

Nissan Motor Co. has completed its 237 billion-yen ($2.3 billion) purchase of a controlling 34% stake in Mitsubishi Motors Corp.

The companies confirm that Renault-Nissan CEO Carlos Ghosn will add the title of MMC chairman. Osamu Masuko will remain as MMC’s president. Nissan expects to add three directors to MMC’s board. One of them is Trevor Mann, currently Nissan’s chief performance officer, who will become chief operating officer of MMC.

At Nissan, Ghosn for the first time will share CEO responsibilities. His newly appointed co-CEO is Hiroto Saikawa, Nissan’s chief competitive officer.

The two companies plan to co-develop an MPV for the southeastern Asian market, coordinate the resources of their finance companies and share technologies related to hybrid powertrains and autonomous driving.

Ghosn describes such cooperation as “low-hanging fruit” that will generate savings of 25 billion yen ($241 million) in the fiscal year that began April 1. He predicts the savings will rise to 60 billion yen in the next fiscal year as further synergies develop.