Report: Nissan May Buy Controlling Stake in Mitsubishi Motors

Nissan Motor Co. is pondering a move to take control of Mitsubishi Motors Corp. by investing more than 200 billion yen ($1.8 billion) in the beleaguered company, sources tell Japanese broadcaster NHK.

Reuters says the Nissan and Mitsubishi Motors boards are meeting separately on Thursday to review the plan. If the deal is completed, Nissan would become MMC’s largest shareholder. None of the companies is commenting on the report.

MMC’s share price has plunged more than 40% since the company admitted in April that it has manipulated the fuel economy ratings on some of its models for 25 years.

MMC intends to resolve its problems rather than seek aid from other members of the Mitsubishi Group, CEO Osamu Masuko told reporters in Tokyo earlier today. The company said earlier it has enough cash to handle compensation claims arising from the scandal. Reuters says those payments could reach $1 billion.