Carlos Ghosn statement on strategic alliance with MMC
I am pleased to announce that Nissan and Mitsubishi Motors have today agreed a far-reaching strategic alliance.
This transaction represents a potential win-win for both of our companies, and promises to deliver significant synergies and growth opportunities.
Under the terms of the transaction that we have agreed with Masuko-san, my counterpart at Mitsubishi Motors, Nissan will invest 237 billion yen to acquire a 34 per cent stake in MMC.
Pending regulatory approvals, Nissan will become the single largest shareholder in Mitsubishi Motors and we will extend our existing partnership into new areas.
We believe we can realize billions of dollars in one-time and continuing synergies by working closely together in areas including purchasing, common platforms, the shared development of new technologies, joint plant utilization and growth markets.
This will be a dynamic cooperation between two major Japanese car manufacturers, enabling us to harness the respective capabilities of our companies.
At Nissan, we are determined to preserve and nurture the Mitsubishi Motors brand. And we will help this company address the challenges it faces, particularly in restoring consumer trust in its fuel economy performance.
Consumer trust is central to everything we do.
But today is also about future growth for Mitsubishi Motors as part of our enlarged Alliance family.
That family is built around the central pillar of our 17-year partnership with Renault. Together we have created one of the largest, most global and diverse automotive groups in the world.
Renault-Nissan has led the way into new emerging markets. We have taken pioneering steps in electric vehicles – most notably with the zero-emission Nissan LEAF and Renault Zoe – and increasingly in autonomous drive systems and vehicle connectivity.
We have delivered annual synergies of more than 4 billion euros from our Renault relationship. We are also building engines and sharing vehicle architectures with our partners at Daimler. And we have a strong presence in the Russian market through AvtoVaz, which is well placed to benefit from a rebound when that market recovers.
But today is about the vision we share and the potential for many of the synergies in areas that I already mentioned. Nissan also would contribute the management expertise and corporate governance experience necessary to deliver sustainable and profitable growth.
We are at the beginning of a new journey. I am confident that Mitsubishi with our full support will be able to re-establish trust and seize new business opportunities. For Nissan, this alliance will extend our scale and will deliver rewarding direct synergies.
As I said at the outset, it is a potential win-win transaction. We have the track record to make it work and deliver expected results. I will now invite Masuko-san to comment about this deal. And then we will be happy to take your questions.