Nissan seems to want to sell part or all of its shares in Mitsubishi Motors Corporation.
According to Bloomberg, Nissan is considering the possibility of selling the amount of shares it owns in country car company Mitsubishi Motors Corporation (MMC). Currently, Nissan is MMC’s largest shareholder, holding 34% of the shares.
Japan’s third-largest carmaker can transfer part or all of its shares to a Mitsubishi corporation, such as Mitsubishi Corporation, which owns a fifth of the shares. MMC.
If this information becomes true, the world’s largest auto alliance Renault-Nissan-Mitsubishi will face the possibility of disbanding after 4 years of establishment. At the beginning of this year, 3 manufacturers each announced plans to restructure the alliance’s operating model and development goals.
In May 2016, Nissan spent 237 billion yen ($ 2.27 billion) to acquire a 34% stake in MMC when the company was hit hard by a scandal of fuel efficiency fraud. By October 2016, Mitsubishi became the third member of the auto alliance with Nissan and Renault.
Despite certain successes, the Renault-Nissan-Mitsubishi alliance has continuously faced great difficulties over the past few years. After the scandal of former Chairman and CEO Carlos Ghosn, the financial situation of the three car companies is being severely affected by the Covid-19 epidemic and economic recession.
In May, Nissan recorded a net loss of 671 billion yen ($ 6.42 billion) for fiscal year 2019, its worst loss in two decades. Next, in July, the company forecasted a loss of 670 billion yen ($ 6.41 billion) for fiscal year 2020. Most recently, in early November, Nissan said positive business results in China help losses are expected to decline by 28%.
With Mitsubishi, Japan’s sixth-largest carmaker, disclosed its financial report with a loss of 25.78 billion yen ($ 246 million) in 2019 and said it expected a net loss of 360 billion yen (3.45 billion USD) for fiscal year 2020.
Meanwhile, Renault faces a record loss of 7.29 billion euros ($ 8.65 billion) in the first half of 2020. To balance its finances, the French automaker said it will add other savings activities to The plan to cut 2 billion euros (USD 2.37 billion) has been set before.