Nissan throws Mitsubishi a Dh8bn lifeline amid fuel data scandal

Agencies Nissan Motor is taking a 34 per cent stake in scandal-ridden Mitsubishi Motors, even as its profits tumbled, in what the Nissan chief Carlos Ghosn said was “a win-win” deal. Mr Ghosn appeared the with Mitsubishi Motors chairman Osamu Masuko in a hastily called joint conference Thursday in Yokohama, where Nissan is headquartered. Mr […]

Agencies

Nissan Motor is taking a 34 per cent stake in scandal-ridden Mitsubishi Motors, even as its profits tumbled, in what the Nissan chief Carlos Ghosn said was “a win-win” deal.

Mr Ghosn appeared the with Mitsubishi Motors chairman Osamu Masuko in a hastily called joint conference Thursday in Yokohama, where Nissan is headquartered.

Mr Ghosn said Nissan will invest ¥237 billion (Dh8.08bn) to become the top investor in Mitsubishi Motors.

Mr Masuko said Mitsubishi group companies will continue to hold stakes in the car maker.

Mitsubishi Motors has been recently rocked by a scandal over cheating on mileage tests to inflate mileage for minicar models.

Mr Masuko apologised for the scandal but welcomed the alliance with Nissan.

Mr Ghosn, who engineered Nissan’s alliance with Renault, said adding Mitsubishi will be a plus in sharing platforms, purchasing and technology.

Nissan also on Thursday reported a 40 per cent plunge in January to March profit as sales dipped and currency perks faded.

Profit for the quarter fell to ¥71bn. It had a ¥119 bn profit the same period of 2015.

Quarterly sales edged down 1.2 per cent to ¥3.25 trillion.

For the fiscal year, Nissan’s profit rose 15 per cent to ¥523.8bn.

The Yokohama-based car maker forecast a ¥525bn profit for the fiscal year through March 2017.

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