TOKYO— Carlos Ghosn, who heads Japan’s Nissan Motor and Renault of France, will become chairman of Mitsubishi Motors, working to restore faith in the troubled automaker after a devastating mileage scandal (AP PHOTO)
TOKYO— Carlos Ghosn, who heads Japan’s Nissan Motor and Renault of France, will become chairman of Mitsubishi Motors, working to restore faith in the troubled automaker after a devastating mileage scandal.
This developed after Nissan’s purchase—announced last May— of a 34 percent stake in Mitsubishi Motors Corp. for 237 billion yen ($2.3 billion) was made official on Thursday. With the purchase, Nissan has become the biggest shareholder in Mitsubishi, and Mitsubishi becomes a member of the Nissan-Renault alliance.
Nissan agreed to take charge at Mitsubishi after the company acknowledged in April that it cheated to inflate mileage for two of its minicar models, the eK wagon and eK Space, and mini-vehicles it made for Nissan. No overseas models are affected.
Ghosn, who presided over Nissan’s revival from the brink of bankruptcy in the early 2000s after it formed an alliance with Renault, said he expected it would be difficult to restore Mitsubishi’s shattered reputation.
“I can tell you we will not spare anything to support Mitsubishi. I think it’s possible. It is going to be difficult. It will require tough decisions,” he told reporters. But the Brazilian-born Frenchman said he believed it was possible. “We are sending a clear message we believe in the underlying strength of Japanese car making,” Ghosn said.
The two companies have said they plan to maintain separate identities, brands and dealerships after the deal.