Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.08
    +1.73 (+2.13%)
     
  • GOLD FUTURES

    2,240.10
    +27.40 (+1.24%)
     
  • DOW

    39,836.63
    +76.55 (+0.19%)
     
  • Bitcoin GBP

    56,138.21
    +1,857.64 (+3.42%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,395.61
    -3.91 (-0.02%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Nissan And Mitsubishi Motors Confirm Stake Talks

Japanese carmaker Nissan could become the single biggest shareholder in scandal-hit Mitsubishi Motors.

Nissan Motor Co has confirmed it is in talks with Mitsubishi Motors Corp over potential investment, after sources said Nissan was considering taking a controlling stake.

The Japanese car manufacturers already cooperate on development and manufacturing, but the current deal does not involve any cross-shareholding.

"Nissan and Mitsubishi (LSE: 7035.L - news) are discussing various matters including capital cooperation, but nothing has been decided," the automakers said in separate statements. They said their boards of directors were to meet in separate talks on Thursday to discuss the matter.

ADVERTISEMENT

Japanese broadcaster NHK has suggested that Nissan may invest more than $1.8bn (£1.3bn) in its rival, at a time when Mitsubishi is facing the fallout from a growing fuel economy cheating probe. If the deal goes through, Nissan would become the largest single shareholder.

Nissan has been a victim of the company's actions, given that Mitsubishi produces a number of models for the Nissan brand.

Mitsubishi admitted on Wednesday that its false reporting on fuel efficiency may now extend to all the vehicles it sold in the Japanese market but insisted it had abided by mileage-test requirements for all cars sold abroad.

It (Other OTC: ITGL - news) had previously limited the cheating to smaller models in Japan after Nissan alerted the firm to test discrepancies.

Mitsubishi is facing the prospect of massive fines in relation to the fuel scandal which, it has admitted, could date back 25 years .

It is also working on a plan to compensate customers.

Mileage fraud is a violation of Japan's fuel efficiency law for cars because buyers are eligible for tax breaks if a vehicle model delivers a certain efficiency.

It said that in some cases engineers simply made up false readings.

Its Tokyo-traded shares have lost more than 40% of their value since the rigging emerged four weeks ago.

Mitsubishi is no stranger to controversy.

In 2004 it teetered on the edge of bankruptcy amid a series of huge recalls linked to a cover-up on historic defects including failing brakes and faulty clutches.

Its latest crisis comes amid widening concerns over irregularities among global car makers following Volkswagen (LSE: 0P6N.L - news) 's admission that it cheated on diesel emissions tests.

The German company reported last month its first annual loss for two decades after its provision for the scandal increased to €16.2bn (£12.7bn).