As part of its plan to take a one-third, $2.2 billion stake in Mitsubishi Motors Corp., Nissan Motor Co. is reportedly appointing its former global technical chief to manage the reform of its one-time rival.
According to two independent sources close to the talks, Nissan and Mitsubishi are negotiating to install Mitsuhiko Yamashita as Mitsubishi’s tech chief. Yamashita served as executive vice president in charge of product and technology research and development at Nissan from 2005 to 2014.
Pending the result of the talks, Yamashita’s appointment may be finalized at an emergency board meeting at Mitsubishi on Wednesday.
Mitsubishi’s market value has declined by over $3 billion since April, when it admitted to overstating the fuel economy ratings of four vehicles that it sells in Japan. Two of the vehicles involved in the scandal were re-badged and sold as Nissan models.