Key facts
- Nissan acquired a 34% stake in Mitsubishi Motors in October 2016.
- The alliance was expected to create one of the world's top three automotive groups.
- Mitsubishi Motors' market capitalization has decreased by about 40% since the investment.
- Speculation is rising about potential new capital partners as the lockup period nears its end.
The decade-old alliance between Nissan Motor and Mitsubishi Motors is approaching a critical juncture, marked by a significant decline in Mitsubishi's market capitalization and speculation about potential divestment by Nissan. Since Nissan's acquisition of a 34% stake in October 2016, following Mitsubishi's fuel economy scandal, the expected synergies and market dominance have not materialized as anticipated. Mitsubishi Motors' market value has reportedly fallen by approximately 40% over the past ten years.
At the time of the investment, Nissan Chairman and CEO Carlos Ghosn hailed the combination with Mitsubishi and Renault as creating a new global automotive force, projecting substantial synergy benefits and aiming for combined sales of 10 million units. Nissan provided assistance at the request of then-Mitsubishi CEO Osamu Masuko, with Ghosn taking a role as chairman-elect of Mitsubishi's board and implementing management changes to support the integration.
With the lockup period for Nissan's stake nearing its end, market observers are considering the possibility of Nissan divesting its shares. This potential shift has led to speculation about other companies, such as Honda or Foxconn, potentially stepping in as new capital partners for Mitsubishi Motors.