Nissan to buy 34% stake in Mitsubishi Motors


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But, it wasn't so long ago that Nissan were also in trouble with low sales and quality issues. They have fought back well with the new CEO, but I'm not sure if they want anything to do with Mitsubishi. They should change the name to, Mud-subushi because it has stuck!

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Serve 'em right. Wouldn't touch either manufacturer with a barge pole.

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So Nissan reports Mitsubishi for reporting issues and now is planning a merger. Sounds to me like this was Nissan's play the entire time.

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Smart move, and let's remember that Nissan functions at upper levels like a non-Japanese company. Mitsubishi had some gems in its range, but its speaks volumes about the group's internal focus that it continued to market a limo (albeit a rebadged Nissan) for the conglomerate's many execs while dropping the ball on stronger models.

The Nissan-Renault alliance acquires capacity to develop:

plug-in hybrids to replace the autumnal Leaf and allay range anxiety;

an SUV portfolio with a pedigree to challenge Land Rover and Toyota;

kei cars for its developing markets Datsun brand.

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Nissan/Mitsubishi might be developing "micros" or "subcompacts" or some other name of vehicle for its developing markets Datsun brand, but it wouldn't be developing "keis" because a kei is a small car designed within a number of restrictive rules to gain preferential tax treatment in Japan. Take away the preferential tax treatment and you are left with a car that has been designed according to strange bureaucratic rules, not by designers with a blank piece of paper trying to make the best possible car.

In addition to the well known 660cc rule, keis are four seaters max, so only two seatbelts in the back, and have rules on maximum length, width and horsepower. One of the best selling keis in Japan, Suzuki's Wagon R, is sold in India, but with a 1000cc engine, i.e., a non-kei configuration. Take away the tax break and there is no overwhelming reason to use a 660cc engine. Most keis with decent performance are turbos, and they aren't good for fuel economy.

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I think lying about mileage is a lot worse than when the Germans cheated the emissions tests. A company has to be very careful what it promises to customers. People have a long memory for stuff like that, and it can take a long time for the brand to recover.

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Yubaru, I totally agree with you. I didn't know that it was Nissan, their partner who leaked the information about the fuel efficiency misrepresentation, and suddenly we hear that Nissan is buying a majority of the stock and will take over. So they waited for the stock to tank, and now they ride in like a white knight to save the day. Pretty smart play by Mr. Ghosn, I would say.

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Under the deal, Nissan will purchase 506.6 million newly issued Mitsubishi Motors shares for 468.52 yen a share.

Mitsubishi Motors is at ¥575 now (575-468.52 = 106.48 x 506,600,000 = ¥53,942,768,000 profit on deal)

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