Nissan Motor Co agrees to take a 34 percent stake in Mitsubishi Motors Corp, taking de facto control with a $2.2 billion bet that bails out its smaller, scandal-hit rival. Ryan Brooks reports.
Japanese car giant Nissan swooping in for a piece of a struggling rival. CEO Carlos Ghosn on Thursday confirming his company will buy a 2-point-2 billion dollar stake in Mitsubishi Motors... Nissan will own 34 percent of its smaller competitor, which is wrapped up in a fuel-data rigging scandal. SOUNDBITE: Nissan Motors CEO, Carlos Ghosn, saying (English): "At Nissan, we are determined to preserve and nurture the Mitsubishi Motors brand, and we will help this company address the challenges it faces particularly in restoring consumer trust in its fuel economy performance." Mitsubishi has admitted cheating on fuel stats for at least four of its models - including two that are made for Nissan. Smiling for the cameras, Ghosn called the deal a win-win... So what's in it for both sides? SOUNDBITE: Wilson King Investment Management Head of Research, Richard Hunter, saying (English): "These are companies which already work with each other in terms of some of their development and manufacturing, so there is quite a tight fit there, but clearly Nissan are taking a longer term view and benefitting from the rather lower price resulting from the Mitsubishi fuel economy news." Positive news for Mitsubishi, but the good times may be short-lived The company is looking at an estimated one billion dollar payout in compensation for fuel rigging On Wednesday, it said it has enough cash to weather the storm... But the scandal may have affected far more vehicles than initially thought.