Tug of war inside the alliance

Concern Mitsubishi plans to buy 10% of the shares of its partner (Renault). These actions are necessary in order to strengthen the Renault-Nissan-Mitsubishi alliance. 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, there was a deal to buy out 34% of the Mitsubishi Motors conglomerate.

Cardinal measures

In January 2020, information about emergency actions and difficult decisions by Nissan was released. In order to keep costs down, the company's management intends to implement a massive downsizing. 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, there was information that the leadership of Nissan will have to dismiss three thousand employeesworking in Spain for the production of this famous auto brand. The work of the plants was stopped as a result of the rapid spread of the coronavirus COVID-19. The pandemic caused a breach in the parts supply chain.

Data provided by: Automotive News.