The Renault-Mitsubishi-Nissan Alliance might no longer be as solid a partnership as once thought.
According to a recent report by Bloomberg, Nissan is currently looking into reducing its 34% stake in fellow Japanese carmaker Mitsubishi—a move that could reverberate throughout the global auto industry and “reshape the world’s biggest auto alliance.”
“The timing is also noteworthy. We are almost two years since the shock arrest of Carlos Ghosn back in Tokyo in late 2018. And this kind of goes to show how far we’ve seen reverberations from that incident,” Bloomberg’s Reed Stevenson reports, adding that everything, from the controversies surrounding Ghosn to the current drop in sales due to the COVID-19 pandemic, may have led to this.
“And so now we’re starting to see the first cracks in this alliance two years after Ghosn’s arrest,” Stevenson added.
In a statement, Nissan denied the report, saying “there are no plans to review the capital relationship with Mitsubishi Motors.”
“More than ever, the alliance must focus on each company's areas of expertise and make the best use of their assets, which is a prerequisite for achieving each company's medium-term plan,” the Japanese carmaker said.
“In the first place, the basic policy of the alliance is to presuppose the brand strategy and growth strategy of each company, and to realize it, we will collaborate on projects that are mutually beneficial. One of them is the utilization of the ‘leader and follower’ framework announced in May 2020 to improve the efficiency of product and technology development. Utilizing this framework, we are currently working with Mitsubishi Motors not only to develop and produce mini vehicles but also to share platforms and powertrains.”
Let’s wait and see how this situation pans out. Do you think Nissan will drop its stake in Mitsubishi, or will the car manufacturer keep the Alliance intact throughout the COVID-19 crisis? Let us know in the comments.