As per sources, Nissan Motor Co is planning to sell its 34% of stakes to Mitsubishi Motors Corp. This can be a fundamental change in the triple alliance, which also includes France’s Renault SA.
Due to the economic effects of the coronavirus pandemic, Nissan is worried that it may struggle, so it is considering looking for potential buyers, which could include other shareholders such as trading firm Mitsubishi Corp.
Nissan Motors has been 43% owned by Renault and in the previous week cut its operating loss forecast for the year to March by 28% to 340 billion yen (2.5 billion pounds), especially in China.
Mitsubishi Motors, Japan’s No.6 automaker is been expecting to post an operating loss of 140 billion yen for the business year.
Both companies, Nissan Motors Co and Mitsubishi Motors, have been cutting production levels and costs in a bid to return to profitability.
Mitsubishi Motors Corporation is a Japanese multinational automotive manufacturer headquartered in Minato, Tokyo, Japan. In 2011, Mitsubishi Motors was the sixth-largest Japanese automaker and the nineteenth-largest worldwide by production.
The Nissan Motor Company, Ltd. trading as the Nissan Motor Corporation and usually shortened to Nissan is a Japanese multinational automobile manufacturer headquartered in Nishi-Ku, Yokohama, Japan. The company sells its cars under the Nissan, Infiniti, and Datsun brands with in-house performance tuning products labelled Nismo. The company traces its name to the Nissan zaibatsu, now called Nissan Group.
