Concern Mitsubishi plans to buy 10% of the shares of its partner (Renault). These actions are necessary in order to strengthen the Renault allianceNissan-Mitsubishi. Other possibilities for strengthening this alliance are being considered.
Companies may need to be restructured, some factories closed, or costs cut. In May 2020, the nuances of this business idea will become known. Renault refuse to discuss the current circumstances.
At the moment, Mitsubishi Corporation owns 20% of Mitsubishi Motors' securities, Nissan - 15% of Renault. Renault owns 43 percent of Nissan. Four years ago, in the spring, a deal was made to buy out 34% of the Mitsubishi Motors conglomerate.
In January 2020, information about emergency actions and difficult decisions by Nissan was released. To keep costs down, the company's management intends to implement a massive cut. Such changes will affect two factories and their employees. Production will be closed and 4300 employees will be laid off. Also, the lineup will be smaller than at the moment.
More recently, on March 23, it was reported that the Nissan management would have to fire three thousand employeesworking in Spain on the production of this famous car brand. Factories have been shut down as a result of the rapid spread of the COVID-19 coronavirus. The pandemic has caused a disruption in the spare parts chain.
Data provided by: Automotive News.