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Nissan Taking The Shita As It Seeks To Reform Mitsubishi
Industry News
Nissan will fork out nearly $2.2 billion dollars to take a one third shareholding of Mitsubishi. Doing so will give Nissan a controlling stake and allow Mitsubishi’s bigger rival to have an almost de-facto leverage over its smaller rival. Early this year Mitsubishi admitted to making up fuel economy data and the resulting fallout has brought the company to it’s knees. With financial and shareholder clout Nissan is seeking to parachute in senior executives who will turn around and restructure the way how Mitsubishi’s corporate side is run. Mitsuhiko Yamashita was Nissan’s global tech chief from 2005 – 2014 and is believed to be Nissan’s preferred choice to become Mitsubishi’s tech chief. Nissan will likely acquire a 34 percent stake in Mitsubishi once the details have been finalised. Any business or individual who has more than 29 percent shares in a company effectively has the power to veto or in this case become the head of the corporation. When the deal is completed Mitsubishi will be run by Nissan and therefore it will experience a major re-organisation of how the company is structured and run on a day to day basis. Carlos Chosn, the CEO of Nissan, has stated that he believes the company will be headed by a Nissan executive sometime in the near future. In the meantime, and behind the scenes, a lot of boardroom discussions and deals are being finalised. Mitsubishi has been involved in a number of corporate scandals over the past two decades and this latest fuel data rigging saga has seen a $3 billion dollar devaluation of worth of shares. Nissan has a joint alliance with Renault and industry analysts predict that the deal between Nissan and Mitsubishi will strength both companies at the expense of the Renault alliance.  Mitsuhiko-Yamashita-Says-Dailycarblog-Is-His-Favourite-Blog
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