Mitsubishi to Buy Shares in Renault

Mitsubishi Corp, which owns a 20% stake in Mitsubishi Motors, may become an investor in Renault.

Mitsubishi may become an investor in Renault. This was reported by Les Echos, citing an unnamed source in the company's management.

Mitsubishi to Buy Shares in Renault photo 2

A potential investment in the form of a 10% stake in Renault is one of the discussed scenarios for strengthening the Renault-Nissan-Mitsubishi Alliance. The possibility of restructuring the alliance with shutting down enterprises and cutting costs is also being considered. The final decision is expected to be made in May. Then the alliance will present a plan to cut costs and reset relations. Renault does not comment on this information.

Mitsubishi Motors considers Nissan its largest shareholder, although ties between the other two members of the alliance are deepening. In addition, Nissan also owns a 15% stake in Renault, which, in turn, owns a 43% stake in Nissan.

Relations between the manufacturers deteriorated after the arrest of the Renault–Nissan–Mitsubishi Alliance CEO Carlos Ghosn by the Japanese prosecutor's office in 2018. He was accused of financial fraud and tax evasion. In the end of 2019, Ghosn fled to Lebanon, where he continued to deny his guilt. Subsequently, Renault and Nissan dismissed a number of top-managers worked for Ghosn. The projects initiated by him are «put on pause».

In early 2020, it was reported that Mitsubishi and Renault promised to revive the alliance. They continued to discuss joint research and a number of developments. The coronavirus pandemic, which forced companies to phase down production, only increased the need for enhanced cooperation.

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