Mitsubishi to pursue Phl plans

Mitsubishi Motors Corp. of Japan will push through with its plans for the Philippines amid the entry of a new major shareholder.

“So far we have not received any notice of any change. Mitsubishi Motors Philippines Corp.’ s plans for the Philippines continue to be on track,” MMPC first vice president and corporate secretary Dante Santos told The STAR.

Such plans include its participation in the government’s Comprehensive Automotive Resurgence Strategy program in which the company would initially invest P4.3 billion to expand its assembly operations in the country.

MMPC is also pursuing its sales target of 70,000 units this year, a 29.4 percent growth from 2015 sales of 54,087 units.

As of end April, MMPC’s total vehicle sales have reached 19,413 units.

Mitsubishi of Japan on Friday announced the acquisition by Nissan Motor Co. Ltd. of a 34 percent equity stake in the company for 237 billion yen.

Nissan is set to become the largest shareholder of Mitsubishi upon the signing of the agreement by the end of the month.

“This is a breakthrough transaction and a win- win for both Nissan and Mitsubishi Motors. It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies. We will be the largest shareholder of Mitsubishi, respecting their brand, their history and boosting their growth prospects. We will support Mitsubishi as they address their challenges and welcome them as the newest member of our enlarged alliance family,” Nissan chief executive and president Carlos Ghosn said.

“Through its long history of successful partnerships Nissan Motor has developed a deep knowledge of maximizing the benefits from alliance partnerships. This agreement will create long term value needed for our two companies to progress towards the future. We will achieve long term value through deepening our strategic partnership including sharing resources such as development, as well as joint procurement,” Mitsubishi chairman and chief executive Osamu Masuko said.

Mitsubishi said the strategic alliance would extend an existing partnership between the two companies that has been going on for the past five years. Nissan and Mitsubishi have agreed to cooperate in areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets.

“Nissan acquisition simply reflects the dynamism of corporate shareholdings in the global automotive business,” Santos said.