Citing the scandal that its previous leader faced and the adverse effects of the coronavirus pandemic in auto sales, Bloomberg reported that Nissan is looking into selling its 34 percent stake in Mitsubishi. This move will not only help Nissan get back on its feet following the ruckus but also shake things up in its three-way alliance that involves French automaker, Renault.
Nissan, however, is quick to refute the report through an official statement on its media website. According to the Japanese automaker, “There are no plans to review the capital relationship with Mitsubishi Motors.”
“We are not in any discussion or consideration of changing the capital structure in our partner companies. We are moving ahead with many projects,” Nissan’s Chief Operating Officer Ashwani Gupta said in an interview at the Reuters Automotive Summit teleconference.
At Monday’s closing price in Tokyo, Nissan’s stake in Mitsubishi Motors was worth $975.8 million. Nissan shares rose 5 percent, while Mitsubishi Motors, gained 3 per cent.
Nissan last week cut its operating loss forecast for the year to March by 28%, helped by a rebound in demand, especially in China.
Mitsubishi Motors said in a statement that there were no discussions to review their capital relationship and that the automaker “will continue to collaborate within the alliance.”
Mitsubishi Motors has forecast a $1.3 billion operating loss for the fiscal year ending in March.
Nissan’s results, released last week, the automaker is still projecting a $3.2 billion operating loss for the fiscal year. It has been on a debt-issuing spree, raising a total of almost 900 billion yen in funding.