Mitsubishi bought back most of its shares from Nissan; What is the future of the alliance between the two Japanese automakers?

According to AutoBlog, Mitsubishi announced that it has bought back 10% of its shares from Nissan, which will reduce Nissan’s stake in Mitsubishi from 34% to 24%. This strategic action is aimed at increasing the control and flexibility of Mitsubishi in the management department of its company.

In the Mitsubishi stock repurchase transaction from Nissan on the Tokyo Stock Exchange, Mitsubishi committed to purchase approximately 149 million shares at a price of approximately $3.01 per share. This decision is taken while Nissan is facing significant financial challenges. The company recently announced that it plans to lay off up to 9,000 employees and reduce production capacity by 20%. Also, Nissan’s annual operating profit forecast has decreased by 70%.

There are several reasons for Mitsubishi’s decision to buy back its shares. One of the most important reasons for this decision is to strengthen Mitsubishi’s independence and reduce its dependence on Nissan. By reducing Nissan’s stake, Mitsubishi can more freely pursue its strategic goals. Also, despite Nissan’s dire situation, this decision can help to improve Mitsubishi’s financial performance and increase its stock value.

Nevertheless, the strategic cooperation between Mitsubishi and Nissan will continue. These two popular Japanese companies have experienced successful cooperation in the development of popular models such as Outlander and Rogue, which are based on common platforms and technologies. It is likely that Mitsubishi and Nissan will continue to cooperate in the field of research and development of new technologies, especially in the field of electric and hybrid vehicles.

Finally, Mitsubishi’s decision to buy back its shares from Nissan marks an important turning point in the history of the popular Japanese company. This decision shows that Mitsubishi is looking to strengthen its independence and redefine the future direction of its products. Due to Nissan’s financial challenges, it is expected that the cooperation of these two companies will be accompanied by significant changes in the future, and after the joint production of the two current cars, they will no longer cooperate seriously to produce cars with each other.