Nissan is reportedly considering selling a portion or all of its equity stake in Mitsubishi Motors. Such a move would reshape the current three-way alliance that exists between Nissan, Renault and Mitsubishi.
Nissan owns a 34-percent stake in Mitsubishi. The company acquired nearly a third of Mitsubishi back in October 2016 when Mitsubishi became part of the Nissan-Renault alliance crafted by Carlos Ghosn, former chairman of the alliance.
“There are no plans to change the capital structure with Mitsubishi,” a Nissan company spokeswoman told Reuters in an emailed statement to Reuters. A Mitsubishi Motors spokesman said the same, adding the company would continue to collaborate within the alliance.
Nissan could sell its stake in Mitsubishi Motors to one of the Mitsubishi Group companies, such as Mitsubishi Corp., which already owns one-fifth of the automaker.
Offloading Mitsubishi, which is expecting to post an operating loss of 140 billion yen during the current fiscal year, could be part of Nissan’s global restructuring. Nissan has struggled to recover from the COVID-19 pandemic, which was made worse by the disruptive confusion of Carlos Ghosn’s rapid departure back in 2018 after criminal charges.
With so many headwinds, a reduction in the Nissan-Renault-Mitsubishi alliance doesn’t seem like a far-out idea. Both Nissan and Mitsubishi are planning to reduce production in an aid to boost profitability.