Nissan throws Mitsubishi a Dh8bn lifeline amid fuel data scandal

Agencies

Nissan Motor is taking a 34 per cent stake in scandal-ridden Mitsubishi Motors in what the Nissan chief Carlos Ghosn said was “a win-win” deal.

Mr Ghosn appeared the with Mitsubishi Motors chairman Osamu Masuko in a hastily called joint conference Thursday in Yokohama, where Nissan is headquartered.


Mr Ghosn said Nissan will invest ¥237 billion (Dh8.08bn) to become the top investor in Mitsubishi Motors.

Mr Masuko said Mitsubishi group companies will continue to hold stakes in the car maker.

Mitsubishi Motors has been recently rocked by a scandal over cheating on mileage tests to inflate mileage for minicar models.

Mr Masuko apologised for the scandal but welcomed the alliance with Nissan.

Mr Ghosn, who engineered Nissan’s alliance with Renault, said adding Mitsubishi will be a plus in sharing platforms, purchasing and technology.

Nissan also on Thursday forecast operating profit to decline 11 per cent this business year as the it feels the sting of a strengthening yen.

After operating profit jumped 35 per cent to ¥793.3bn in the 2015/16 financial year, Japan’s second-largest car maker said it expected profit for the current year to fall to €710bn.

That undershoots an average estimate of ¥742.7bn, from 27 analysts surveyed by Thomson Reuters.

Nissan is forecasting net profit will be flat this year at ¥525bn.

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