Nissan’s wedding!

Nissan's union with Mitsubishi

Nissan Motor has accepted to start a partnership with Mitsubishi Motors by taking 34 percent of the latter's stake. This strategic alliance which is estimated at $2.2 billion is supposed to completely erase the scandal in which Mitsubishi is involved since the early 2000s.

It all started in Japan, when Mitsubishi began to use a non compliant fuel economy testing method. The car manufacturer company manipulated test data in order to overstate the fuel economy results of 4 models of mini vehicles so as to boost their sales by 10 percent. Furthermore, this manipulation was perpetrated on approximately 650 000 mini vehicles whose production continued since 2013. Among all those falsified tests, were also 468 000 car models that was destined to Nissan.

However, in April, Nissan realised how much Mitsubishi Motors was essential for the well being of its company. As when the deliveries of the Dayz Roox and of the Dayz were momentarily suspended, the sales for the month of the former plunged by 51 percent for minicars and by 22 percent overall. This deal therefore, is a win win situation for both companies. On one side, it will help Mitsubishi to restore the trust of customers in its vehicles and on the other side, it will help Nissan to access the South Asian market’s countries like Thailand where Mitsubishi’s vehicles are much appreciated.

Mitsubishi whose market share has already fallen as low as 40 percent when the scandal broke last month is not at its first wrongdoing. According to the records, it is the third time that a scandal tarnished the image of the car manufacturer. However it is expected that its fresh union with Nissan will finally put an end to the fraudulent activities the company has been involved in since two decades.

Priscilla Camryn By: Priscilla Camryn