Mitsubishi Corp Could Take 10% Stake In Renault To Keep Alliance Going

As presently structured, Mitsubishi Corp holds a 20 percent stake in Mitsubishi Motors.

It has been reported that the Mitsubishi Corporation, Japan’s largest trading company, is considering purchasing a 10% stake in Renault in a bid to reinforce the alliance between the French carmaker, Nissan and Mitsubishi Motors.

According to Les Echos, this is just one scenario being discussed by the top brass, along with various restructuring plans, plant closures and cost-saving schemes.

Changes in the capital structure of the three-way alliance are also on the table, as reported by Reuters.

Right now, Mitsubishi Corp holds a 20% stake in Mitsubishi Motors, whose largest shareholder is none other than Nissan. In turn, the latter owns 15% of Renault, while Renault owns 43% of Nissan.

In a press release from earlier this year, Renault, Nissan and Mitsubishi stressed how important their alliance is for the growth and competitiveness of each company.

“We are reinforcing the collaboration models to fully leverage the strengths within each company to enhance our leadership across regions, products and new technologies,” said the release.

The Alliance decided that each of the three carmakers will become a reference company for a specific region of the world. Nissan will take China, while Renault and Mitsubishi will focus on Europe and South East Asia, respectively.

While Renault couldn’t be reached for an immediate comment, we wouldn’t bet on the French brand jumping at the chance to sell more shares, especially with so many controlling interests circling around. That being said, we still have to wait and see how valid this new information actually is.

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