Nissan became 4th largest auto group after controlling stake in Mitsubishi

Now it's official: Nissan bought 34% stake in Mitsubishi. The deal cost Nissan $2.3 billion, according to the Wall Street Journal, and brings Mitsubishi into the Nissan-Renault Alliance. Carlos Ghosn, CEO of both Nissan and Renault, has been nominated to be the new chairman of the Mitsubishi board. The agreement created the world’s fourth-largest auto group, after Toyota, Volkswagen and General Motors.

The company explained that this new partnership will manifest itself in shared vehicle platforms and technology, joint purchasing, and shared manufacturing. the deal is expected to lead to cost savings and higher profitability as the manufacturers work together. Nissan also said that this purchase will make the company one of the three largest companies by volume in the world.
Mitsubishi Motors has yet to identify potential synergies with Renault. Possibilities for collaboration include Renault’s diesel technology, Masuko said.

Current Mitsubishi president and CEO, Osamu Masuko, will remain in his positions. "One of the reasons that I so much wanted Mr Masuko to stay as CEO was because I wanted the people at Mitsubishi to know that Mitsubishi will remain Mitsubishi. Mitsubishi will not become a subsidiary of Nissan," Mr Ghosn said.