Renault-Nissan expands
Mitsubishi intègre l’Alliance

A new step for the Alliance

The operation cost 2.1 billion Euros and allowed the Renault-Nissan Alliance to buy 34% of the capital of Mitsubishi Motors. "It's a win-win", said Carlos Ghosn in the newspaper Figaro. The CEO of the Alliance, who will become president of the board of administration of the Japanese manufacturer in mid-December, wants to reassure everybody: "Mitsubishi will keep its originality, its particularity. It won't become a branch or a department of Nissan".

In the late 90's, Japanese car manufacturer Nissan almost went bankrupt. But its ground-shaking association with French Renault, in 1999 allowed a rebound of its activity in just a few years. The Renault-Nissan Alliance, became one the biggest car manufacturer groups worldwide and continued its expansion in 2013 by buying Russian car manufacturer Avtovaz.

The guarantee of a future for Mitsubishi

Today the priority is to save Mitsubishi. There is much to be done: sales are in free fall, skills are overspecialised, and more. In April, the car manufacturer was badly shaken by a scandal regarding oil consumption in some of its products.

But Carlos Ghosn trusts in the future. "We have both the know-how and the experience", he said. The strategy will be the same as for Nissan: keep the same identity and the specificities of the manufacturer but exploit at best the synergies and sharing of technologies.

Third in the global market

The buyout allows Renault-Nissan Alliance to strengthen its position in South-East Asia, where Mitsubishi is firmly implemented and sells over 100,000 cars per year. The experience of the Japanese company in rechargeable hybrid technology is also a strength for the group, as is its expertise in "key cars", these mini-cars with tax advantages, particularly demanded in the Japanese market.

The acquisition of Mitsubishi should allow Renault-Nissan to position as the third biggest car group worldwide. With the sales of the Japanese manufacturer, Alliance has sold over 9.5 million cars in 2015, against 10.1 million for Japanese group Toyota and 9.9 million for German Volkswagen AG.

Pictures © Nissan Motor Co. Ltd