Nissan may sell off its 34% stake in Mitsubishi Motors: Reports

Nissan, struggling to recover from the pandemic-induced downturn, could sell its stake to a Mitsubishi group company such as Mitsubishi Corp, which already owns a fifth of Mitsubishi Motors.
By : Reuters
| Updated on: 16 Nov 2020, 04:06 PM
A man wipes the brand logo of Nissan Motor on the front nose section of the company's new Ariya all-battery SUV. (File photo) (REUTERS)
A man wipes the brand logo of Nissan Motor on the front nose section of the company's new Ariya all-battery SUV. (File photo) (REUTERS)
A man wipes the brand logo of Nissan Motor on the front nose section of the company's new Ariya all-battery SUV. (File photo) (REUTERS)
A man wipes the brand logo of Nissan Motor on the front nose section of the company's new Ariya all-battery SUV. (File photo)

Nissan Motor is looking to sell some or all of its 34% stake in Mitsubishi Motors, Bloomberg News reported on Monday, citing unidentified sources, a move that would reshape a three-way alliance that includes France's Renault.

Nissan shares rose 5% on the news. Mitsubishi Motors was up 3%.

"There are no plans to change the capital structure with Mitsubishi," a Nissan company spokeswoman told Reuters in an emailed statement. A Mitsubishi Motors spokesman said the same, adding the company would continue to collaborate within the alliance.

Similar Cars

Find More Cars
Renault Kwid (HT Auto photo)
Renault Kwid
799 cc | Petrol | Manual | 25 kmpl
₹4.07 - 5.51 Lakhs**Ex-showroom price
Nissan Magnite (HT Auto photo)
Nissan Magnite
18.75 kmpl | 999 cc | Manual | Petrol | 5 Person | FWD | 71 bhp | 96 Nm | 205 mm | 939 kg | 336 litres | 5 Gears | 1.0L B4D | No | 40 litres | Hrs | 750 Km | | No | Front & Rear | seconds | Kmph | 18 kmpl
₹4.99 - 10.05 Lakhs**Ex-showroom price
Renault Triber (HT Auto photo)
Renault Triber
999 cc | Petrol | Manual | 19 kmpl
₹5.12 - 7.98 Lakhs**Ex-showroom price
Renault Kiger (HT Auto photo)
Renault Kiger
999 cc | Petrol | Manual
₹5.45 - 10.09 Lakhs**Ex-showroom price
Renault City K-ze (HT Auto photo)
UPCOMING
Renault City K-ze
Electric | Automatic
₹6 - 10 Lakhs* *Expected Price
Renault Duster (HT Auto photo)
Renault Duster
1498 cc | Petrol | Manual | 14.19 kmpl
₹9.39 - 14.28 Lakhs**Ex-showroom price

Renault did not immediately respond to an email seeking comment.

Nissan, struggling to recover from the pandemic-induced downturn, could sell its stake to a Mitsubishi group company such as Mitsubishi Corp, which already owns a fifth of Mitsubishi Motors, Bloomberg said.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

(Also read: Renault teases new sub-compact SUV for India, likely to be launched soon)

Such a deal would fundamentally alter a three-way partnership built by Carlos Ghosn, former chairman of the alliance, which plunged into confusion when he was arrested in 2018 on charges of financial misconduct.

Ghosn had wanted a full merger of Renault and Nissan, which was shelved, according to Reuters sources, as the companies decided to fix the troubled alliance. The pandemic has, however, compounded problems and made a recovery hard.

Nissan, which is 43% owned by Renault, last week cut its operating loss forecast for the year to March by 28%, helped by a rebound in demand, especially in China. Mitsubishi Motors, Japan's No.6 automaker, expects to post an operating loss of 140 billion yen for the business year.

Both companies are cutting production levels and costs in a bid to return to profitability.

First Published Date: 16 Nov 2020, 04:05 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city