Nissan denies rumors of sale of its stake in Mitsubishi

Nissan denies rumors of sale of its stake in Mitsubishi

November 17, 2020 0 By autotimesnews

The Alliance aims to advance its strategy.

Citing the scandal faced by its previous leader and the negative impact of the coronavirus pandemic on car sales, Bloomberg reported that Nissan is considering selling its 34 percent stake in Mitsubishi. The move will not only help Nissan get back on its feet in the wake of the scandal, it will also shake up its alliance involving French automaker Renault.

However, Nissan was quick to deny the report by posting an official statement on its website. The report says the company “has no plans to renegotiate its capital relationship with Mitsubishi Motors.”

Nissan notes that Mitsubishi is working on the “Small But Beautiful” structural reform that was announced earlier this year. The company said that “the alliance should focus on each company’s areas of expertise and make the best use of their assets, which is a prerequisite for achieving each company’s medium-term plan.”

Back in May of this year, the alliance announced its medium-term plan, maintaining a leader-follower pattern in every segment of the global market. Through this business model, the alliance is expected to cut investment in vehicle development by up to 40%.

The leader-follower scheme notes that Nissan will be the parent company for China, North America and Japan. Renault, on the other hand, will lead the markets in Europe, Russia, South America and North Africa, and Mitsubishi in the ASEAN and Oceania regions. Based on the press release, it looks like Nissan is intent on implementing this strategy.