Mitsubishi Motors has re-entered an agreement with Daimler, the parent company of Mercedes-Benz, strengthening the on-going partnership between the Alliance and the German conglomerate.
According to a report by Nikkei Asian Review, Mitsubishi Motor’s board has formally approved the partnership, re-igniting the partnership that ended 13 years back. To recall, then DaimlerChrysler alliance bought a 34% stake at Mitsubishi in the year 2000 – a capital venture that saved the automaker from a scandal. The partnership ended in 2005.
Specifics of the reinstated alliance are yet to be announced, but Mitsubishi will likely offer technical assistance when it comes to electric vehicles and engine development. One thing’s for sure, though – there won’t be a capital tie-up between Daimler and Mitsubishi, which is something that contrasts to what Daimler has been doing with the rest of the Alliance members, Nissan and Renault.
The partnership between the Japanese and French marques with the German brand goes as far as cross-shareholding. Nissan and Renault own a 3.1% stake in Daimler, while Daimler owns 1.55% of both brands.
Going back to Mitsubishi, the partnership between the Diamond brand was put on hold amidst the scandal that involves Chairman and CEO, Carlos Ghosn. Ghosn has jumpstarted the joint venture with the German automaker to strengthen the Alliance’s foothold in the automotive market. Thankfully, Mitsubishi pushed through with the partnership, even with Ghosn’s arrest, as it sees the tie-up as a preparation for the brand’s future cars.
With the partnership set in stone, we are looking towards a new breed of Mitsubishi and Mercedes-Benz cars in the future, along with Nissan and Renault. We’ll keep ourselves posted of its development as it’s only a matter of time until the new tie-up will affect the lineup of Nissan, Mitsubishi, and Mercedes-Benz in the country.
Source: Nikkei Asian Review