MOTORING NEWS - Nissan said on Thursday it is in talks with scandal-hit Mitsubishi Motors over a tie-up that could create one of the world's biggest auto groups, rivalling Toyota and Volkswagen.
The announcement came after Japanese media said Nissan will pay about $1.8bn for 34% of Mitsubishi, which has been plunged into crisis after bombshell revelations it cheated on fuel-economy tests for years.
"Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," Nissan said on Thursday. The firms will hold a joint news conference later Thursday after separate board meetings.
The proposed deal would amount to Mitsubishi coming under the control of Nissan, making it the top shareholder ahead of Mitsubishi Heavy Industries, which holds a 20% stake, according to major media including national broadcaster NHK.
"Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," Nissan said on Thursday. The firms will hold a joint news conference later Thursday after separate board meetings.
The proposed deal would amount to Mitsubishi coming under the control of Nissan, making it the top shareholder ahead of Mitsubishi Heavy Industries, which holds a 20% stake, according to major media including national broadcaster NHK.
Demand for Mitsubishi's shares skyrocketed in Tokyo, where trading was yet to begin as buy orders overwhelmed sellers. The stock was set to surge about 16% when trading starts.
Mitsubishi admitted last month that unnamed employees had manipulated data to make cars seems more fuel-efficient than they were.
Mitsubishi admitted last month that unnamed employees had manipulated data to make cars seems more fuel-efficient than they were.
The scandal - reported to cover almost every model sold in Japan since 1991 - also includes mini-cars produced by Mitsubishi for Nissan as part of a joint venture. It was Nissan that first uncovered the problems with Mitsubishi's fuel economy data, but Mitsubishi has said Nissan had no part in the cheating.
So far, Mitsubishi has confirmed that four models and more than 600,000 vehicles - all sold in Japan - were involved in the fuel cheating, but warned the number of cars affected would likely rise.
So far, Mitsubishi has confirmed that four models and more than 600,000 vehicles - all sold in Japan - were involved in the fuel cheating, but warned the number of cars affected would likely rise.
The company has suggested employees fudged the tests because they felt under pressure to meet ambitious fuel-economy targets. In some cases, cars appeared to be about 15% more fuel-efficient than they were in reality.
Analysts said a tie-up would give Nissan access to Mitsubishi's strong foothold in Southeast Asia and some key technology, including hybrids and minicars, which are hugely popular in Japan. The move would also help drive Nissan CEO Carlos Ghosn's long-held target of running one of the world's top three auto groups.
Analysts said a tie-up would give Nissan access to Mitsubishi's strong foothold in Southeast Asia and some key technology, including hybrids and minicars, which are hugely popular in Japan. The move would also help drive Nissan CEO Carlos Ghosn's long-held target of running one of the world's top three auto groups.
