Nissan, Mitsubishi Motors holds media briefing; CEOs to attend

By Czarina Ara Lasco

Oct 20, 2016 06:00 AM EDT

On Wednesday, persons who are acquainted with the two companies told Reuters that Carlos Ghosn would become the Chairman of Mitsubishi Motors as part of Nissan's plan to purchase 34 per cent stakes of the former, which currently recovers from a huge cheating scandal.

On the other hand, an individual present during the closed door discussions of the two companies told Reuters on Thursday that Osamu Masuko will stay on as President of Mitsubishi Motors when the stake purchase is complete.

Spokespersons from Nissan Motor Co. and Mitsubishi Motors Corp., however, refused to speak-up regarding the said issue.

Ghosn also serves as chairman and CEO of Nissan and its alliance partner, French automaker Renault SA.

Back in May, Nissan announce that it would buy 34 per cent of the stakes of Mitsubishi Motors for around 237 billion yen or equivalent to $2.29 billion. It was after Mitsubishi admitted the falsification of the mileage of four mini-vehicle models, including two which were made for Nissan.

Mitsubishi Motors accounted its lack communication, negligent control and internal pressure for its insufficient of compliance after it was found in August to have exaggerated the mileage of eight additional models.

Upon finalizing the Nissan deal, Mitsubishi Motors' shareholdings by Mitsubishi group of companies including trading house Mitsubishi Corp, Mitsubishi Heavy Industries Ltd and Bank of Tokyo-Mitsubishi UFJ Ltd, will likely be weakened to around 17 percent, from about 34 percent before the deal was announced.

Nissan Motor Company Ltd. was the sixth largest automaker in the world behind Toyota, General Motors, Volkswagen Group, Hyundai Motor Group, and Ford in 2013. Taken together, the Renault-Nissan Alliance would be the world's fourth largest automaker. Nissan is the leading Japanese brand in China, Russia and Mexico.

On the other hand, as of June 2016, Mitsubishi Motors Corporation, is majority-owned by Nissan, and thus a part of the Renault-Nissan Alliance.

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