Nissan’s controlling stake in auto rival

NISSAN MOTOR Co said on Thursday it had completed a deal to take a controlling stake in Mitsubishi Motors Corp, and would be retaining the embattled automaker’s chief executive to ensure its recovery from a mileage cheating scandal.

Japan’s number two automaker has agreed to make a 237 billion yen (£1.86bn) investment to acquire a 34 per cent stake in Mitsubishi Motors, making it the single largest shareholder in its smaller peer.

The deal will make Mitsubishi Motors a member of an alliance between Nissan and French automaker Renault.

The two companies said that the partnership would generate significant synergies in areas including purchasing and plant utilisation, adding that they would jointly develop automated driving technologies and plug-in hybrid vehicles.

Pending shareholder approval, Carlos Ghosn, who serves as chairman and CEO of both Nissan and Renault, will lead the board of Mitsubishi Motors, while Osamu Masuko will remain the company’s president and CEO despite calls by some shareholders for him to resign to take responsibility for falsifying the mileage on its vehicles.

Ghosn said keeping Masuko on was an “important condition” in proceeding with the partnership, adding that all management decisions would be made by Masuko.