Mitsubishi LANCER EX Sporty sedan providing global standard of safety, environment and comfort performance. Sporty form consistent with roomy interior space. Great handling and comfort ride brought by highly achieved fundamental performance. Photo courtesy of MMC

Tokyo, Japan - October 20, 2016

• MMC to receive strategic, operational and management support from Nissan

• Synergy benefits to enhance MMC profit margins and earnings per share

• Carlos Ghosn, Nissan chairman and CEO, named chairman-elect of MMC

• New role created of Director for Global Risk Control

Mitsubishi Motors Corporation (MMC) announces that Nissan Motor Co., Ltd. (Nissan) has become its largest shareholder after completing the purchase of 34% of MMC-issued stock for 237 billion JPY.

Carlos Ghosn, chief executive and president of Nissan (left) and Osamu Masuko, chairman of the board and chief executive of MMC. Photo courtesy of Nissan

As part of Nissan's strategic investment, MMC will become a full member of the 17-year strong global alliance between Nissan and Renault – paving the way for synergies to enhance profit margins and earnings per share.

Carlos Ghosn, chief executive and president of Nissan (left) and Osamu Masuko, chairman of the board and chief executive of MMC. Photo courtesy of Nissan

Nissan Chairman and Chief Executive Officer Carlos Ghosn has been nominated to become chairman of the Board.

Ghosn will be joined by three other Nissan nominated directors, including Mitsuhiko Yamashita, Nissan's former executive vice president of research and development, who joined MMC earlier this year as head of development.

Osamu Masuko, chairman of the board and chief executive of MMC. Photo courtesy of Nissan

The other nominees are Hitoshi Kawaguchi, Nissan chief sustainability officer and head of global external affairs, and Hiroshi Karube, Nissan global controller and global asset manager.

Nissan CEO Carlos Ghosn has been nominated to become Chairman of the Board of MMC. Photo courtesy of Nissan

MMC President and Chief Executive Officer Osamu Masuko requested that Nissan also provide a senior executive to join the company's executive committee to bolster MMC's management.

Nissan and Mitsubishi Motors Press Conference. Photo courtesy of Nissan

Trevor Mann, currently Chief Performance Officer of Nissan, will become Chief Operating Officer of MMC.

Nissan and Mitsubishi Motors Press Conference. Photo courtesy of Nissan

"I welcome Nissan's willingness to provide strategic, operational and management support as our new lead shareholder," said Masuko.
"As part of our Board and management team, Nissan will help us to rebuild customer trust in our company and maximize potential future synergies through our deeper alliance."

Mitsubishi LANCER EX Sporty sedan providing global standard of safety, environment and comfort performance. Sporty form consistent with roomy interior space. Great handling and comfort ride brought by highly achieved fundamental performance. Photo courtesy of MMC

MMC will appoint a new role of director for global risk control to report directly to the chief executive officer, who will oversee compliance and risk control.
This director will regularly report to the board on moves to enhance governance at MMC.

Mitsubishi LANCER EX Sporty sedan providing global standard of safety, environment and comfort performance. Sporty form consistent with roomy interior space. Great handling and comfort ride brought by highly achieved fundamental performance. Photo courtesy of MMC

The three largest institutional shareholders in MMC – Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo-Mitsubishi UFJ – have welcomed Nissan's investment and pledged their support for its board nominees.
Moving forward, these three Mitsubishi institutional shareholders together with Nissan will maintain a more than 51 percent of the share capital.

Mitsubishi LANCER Sportback Stylish and premium five-door hatch with the impression of coupe. Photo courtesy of MMC

Nissan and MMC will begin cooperating on a wide-ranging synergy program, building on a five-year alliance in minicars between the two companies.

Mitsubishi OUTLANDER PHEV The world's first plug-in hybrid SUV provides an all-in-one EV/4WD/SUV experience. Photo courtesy of MMC

The two companies have identified a number of valuable synergies in areas including:

• Joint purchasing cost-reduction

• Deeper localization in operations around the world

• Joint plant utilization

• Common vehicle platforms

• Technology sharing

• Cooperation in emerging and developed markets; and

• The use of the Nissan Sales Finance Company to serve MMC customers in any market where mutually beneficial.

Mitsubishi OUTLANDER PHEV The world's first plug-in hybrid SUV provides an all-in-one EV/4WD/SUV experience. Photo courtesy of MMC

The partnership is expected to generate significant recurring synergies for MMC, equivalent to a 1 percentage point increase in operating profit margin in fiscal year 2017, 2 percentage points in fiscal year 2018, and more than 2 percentage points in fiscal year 2019.

Mitsubishi MIRAGE G4 Sleek aerodynamics, with a dynamic character line which kicks up towards the rear. Photo courtesy of MMC

The projected synergies are also forecasted to enhance MMC earnings per share in fiscal year 2017 by 12 yen per share, and by 20 yen per share in fiscal year 2018.

Mitsubishi MIRAGE G4 Sleek aerodynamics, with a dynamic character line which kicks up towards the rear. Photo courtesy of MMC

Ghosn said:
"The expanded Alliance will be one of the largest automotive groups in the world, with annual sales of 10 million units in fiscal year 2016. The addition of Mitsubishi Motors will build on the entrepreneurial spirit and management cooperation that has characterized our alliance with Renault for 17 years. I am confident this will benefit all stakeholders."

Mitsubishi PAJERO SPORT Genuine off-road SUV with tough and rigid ladder frame. Superb off-road driving performance and ride comfort. Photo courtesy of MMC

About Mitsubishi Motors Corporation (MMC)

MMC is a Japanese automobile company which has a competitive edge in light trucks (pick-up trucks and SUVs) and in the ASEAN region.

The company launched the first mass-produced electric vehicle in 2009, which was followed with a plug-in hybrid EV-based crossover in 2013. MMC, which has 30,000 employees, has a global footprint and has production facilities in Japan, Thailand, China, The Philippines and Russia.

Mitsubishi PAJERO SPORT Genuine off-road SUV with tough and rigid ladder frame. Superb off-road driving performance and ride comfort. Stylish and high quality exterior with comfortable and convenient interior space. Photo courtesy of MMC

Models such as the Pajero Sport, Triton and Outlander play a major role in achieving its growth.

Global sales volume in fiscal year 2015 was 1,048,000 units.

MMC's net sales and net income for fiscal year 2015 were 2,267.8 billion yen and 89.1 billion yen respectively.

MMC is listed on the Tokyo Stock Exchange.


Carlos Ghosn

Chairman and CEO of the Renault-Nissan Alliance
President and Chief Executive Officer Nissan Motor Co., Ltd.
President and Chief Executive Officer of Renault Group

Carlos Ghosn Photo courtesy of Nissan

Carlos Ghosn is President and Chief Executive Officer of Nissan Motor Corporation, Ltd., a global automotive company with more than 240,000 employees and over US$110 billion in revenue.

He joined Nissan as Chief Operating Officer in June 1999 and became CEO in June 2001.

Mr. Ghosn was the lead architect of the Nissan Revival Plan, which transformed the company from near-bankruptcy to profitability within two years.
Under Mr. Ghosn's leadership, Nissan has had higher profit margins than many rivals and has expanded geographically - particularly to China, which is now one of Nissan's key markets by volume.

Photo courtesy of Nissan

In addition to his responsibilities at Nissan, Mr. Ghosn was named CEO of Renault Group in May 2005, becoming the first person to run two global Fortune 500 companies simultaneously.
In 2009, he added the title of chairman of the board.

He is also Chairman and CEO of the Renault-Nissan Alliance, one of the world's largest automotive groups.
Renault, Nissan and AVTOVAZ together sold more than 8.5 million vehicles in 2015 – more than one in 10 cars worldwide.

Photo courtesy of Nissan

From June 2013 to June 2016, Mr. Ghosn served as Chairman of AVTOVAZ, Russia's largest automaker and owner of the LADA brand.

Prior to joining Nissan, Mr. Ghosn served as Executive Vice President of the Renault Group, a position he had held since December 1996.
In addition to supervising Renault activities in the Mercosur, he was responsible for advanced research, vehicle engineering and development, manufacturing, powertrain operations and purchasing.

Before he joined Renault, Mr. Ghosn was Chairman and Chief Executive Officer of Michelin North America, where he managed Michelin's acquisition of the Uniroyal Goodrich Tire Company in 1990.

Photo courtesy of Nissan

Prior to that, Mr. Ghosn was the Chief Operating Officer of Michelin South America based in Brazil; head of research and development for industrial tires in Ladoux, France; and a plant manager in Le Puy, France.

Mr. Ghosn serves on the International Advisory Council of Tsinghua University in Beijing and the Strategic Council of Saint Joseph University in Beirut.

Courtesy of Nissan

Mr. Ghosn was born in Brazil in 1954.

He graduated with engineering degrees from Ecole Polytechnique in 1974 and from Ecole des Mines de Paris in 1978.

He speaks fluent Portuguese, Arabic, English and French.

Carlos Ghosn, chief executive and president of Nissan (left) and Osamu Masuko, chairman of the board and chief executive of MMC. Photo courtesy of Nissan

Sources:

Mitsubishi Motors Corporation

http://www.mitsubishi-motors.com/en/index.html  

Nissan Motor Co., Ltd.

http://www.nissan-global.com/EN/index.html  



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