Nissan motors has now officially taken over the controlling stake on Mitsubishi motors and Carlos Ghosn has appointed himself Chairman.
The deal brings Mitsubishi motors under the same alliance as Renault and Nissan, they have indicated the partnership will bring significant synergies in areas including purchasing and plant utilization. Pooling resources and eliminating duplicate operations would result in estimated annual cost savings of 25 billion yen for Mitsubishi while lifting its profit margins.
Nissan has agreed to make a 237 billion yen ($2.29 billion) investment to acquire a 34% stake in Mitsubishi Motors, making it the single largest shareholder.
Carlos Ghosn has left Osamu Masuko Mitsubishi motors president and CEO in charge, despite calls by some shareholders for him to resign to take responsibility for falsifying the mileage on cars.
Carlos Ghosn said that keeping Masuko on was “important condition” in proceeding with the partnership.
“One of the reasons that I so much wanted Mr. Masuko to stay as CEO was because I wanted the people at Mitsubishi to know that Mitsubishi will remain Mitsubishi. Mitsubishi will not become a subsidiary of Nissan,” he told a press conference.