Mitsubishi considers Renault investment to prop up Nissan alliance
Japanese conglomerate Mitsubishi is considering investing in Renault in one of a number of schemes being discussed to prop up the French carmaker’s alliance with Nissan.
French media reported today that Mitsubishi was considering taking a 10 per cent stake in Renault, with other options including restructuring and cost savings plans.
Sources told Les Echos that a decision might not be made until May, with no guarantee that the investment would take place.
Mitsubishi owns a 20 per cent stake in Mitsubishi Motors, which in turn counts Nissan as its biggest shareholder.
Sign up to City PM’s Midday Update newsletter, delivered to your inbox every lunchtime
The relationship between the alliance’s two biggest members has been strained since the arrest of Nissan boss Carlos Ghosn in late 2018.
Last month Renault recorded its first loss in a decade as Nissan’s shrinking income knocked its annual revenues.
Nissan also fell to a loss in the third quarter, saying that it would have to carry out more restructuring than previously planned.
However, both firms have committed to making the alliance work, although the global car industry is now facing the new challenge of stalled production due to coronavirus.