Nissan now controls longtime rival and partner Mitsubishi

Nissan Dayz
Nissan has purchased a controlling stake in long-time partner and rival Mitsubishi Motors, saving the troubled company from an uncertain fate.

Mitsubishi has found itself in dire financial straits on several occasions over the past few decades, but unprecedented trouble began last month when it admitted to having manipulated fuel economy figures for a handful of models sold on the Japanese market. To make matters worse, the company later revealed that it had been falsifying data since 1991. The resulting scandal sent Mitsubishi’s stock tumbling by 43 percent, and its new car sales dropped by 51 percent.

The massive loss of capital enabled Nissan buy a 34-percent stake in Mitsubishi for 237 billion yen, a sum that converts to roughly $2.17 billion. When rumors of the purchase broke out, some analysts believed Nissan wanted to invest in Mitsubishi in order to essentially put it out of its misery. However, company boss Carlos Ghosn affirmed the plan is to help Mitsubishi overcome the scandal as quickly and efficiently as possible so that it cam become a productive member of the Renault-Nissan Alliance.

“We will be the largest shareholder of [Mitsubishi], respecting their brand, their history, and boosting their growth prospects. We will support MMC as they address their challenges,” said Ghosn in a statement published online.  He added that Nissan and Mitsubishi have already agreed to cooperate in the areas of purchasing, common vehicle platforms, technology sharing, joint plant utilization, and growth markets.

Nissan and Mitsubishi have collaborated in the past. Many of the kei cars — a special category of tiny city cars that benefit from tax breaks in Japan — found in Nissan’s lineup (like the Dayz, pictured above) are essentially re-badged Mitsubishi models. Sales of kei cars have dropped at an alarming rate in recent years, so sharing development costs is important for both companies. Additionally, Mitsubishi is expected to help Nissan secure a foothold in southeast Asian nations like Thailand. Mitsubishi cars and trucks are popular in that part of the world, but Nissan’s market share is small at best.

Read more: Will Nissan sell its Fiat 500X-fighting crossover in the US?

At the time of writing it’s unclear what the tie-up means for Mitsubishi’s North American operation. We’ve reached out to the company, and we’ll update this story as soon as we hear back.

Features

Where Toronto sees smart sidewalks, residents see ‘1984.’ So what now?

Google-parent Alphabet is partnering with Toronto to develop a new, smart neighborhood, but some are concerned about privacy and the company’s motives. Could residents derail the project?
Mobile

Upcoming Samsung Galaxy S10 trio may all have different camera setups

While we still may be months away from an announcement, there's no doubt about it: Samsung is working hard on its successor to the Galaxy S9. Here's everything we know about the upcoming Samsung Galaxy S10.
Cars

2020 Toyota Supra caught hiding in a trailer without a shred of camouflage

Toyota's plan to once again lure enthusiasts into showrooms involves bringing back the Supra, one of its most emblematic nameplates. Here's what we know so far about the upcoming coupe, which Toyota is developing jointly with BMW.
Business

Chinese court upholds Qualcomm's complaint that Apple infringed on two patents

Apple is following the FTC's lead and has sued Qualcomm for a massive $1 billion in the U.S., $145 million in China, and also in the U.K., claiming the company charged onerous royalties for its patented tech.
Gaming

Get caught up on all things 'Fallout 76,' including recent controversies

Bethesda's Fallout 76 takes the open world series in a new direction. With an emphasis on co-op, survival, and rebuilding a broken world, Fallout 76 is a far different game than its predecessors.
Home Theater

AT&T’s new three-tiered streaming service will include movies, possibly HBO

AT&T has laid out new details for its planned streaming service that's set to launch in 2019. It will include three different price tiers, and will feature movies, original programming, and content from its acquisition of Time Warner.
Social Media

Ride the rails and share your stories with Amtrak’s new social media residency

Amtrak is looking for travel fans with a knack for telling stories on social media. The new Amtrak social media residency program wants amateur travelers to share photos, video, and written content from aboard long-distance trips.
Computing

A second Wells Fargo glitch results in the foreclosure of more homes

A computer error has struck Wells Fargo once again, resulting in hundreds more homes being mistakenly foreclosed after a first glitch was reported in August. To compensate one customer, the bank sent a check for $25,000.
Mobile

Sprint confirms it will launch a 5G smartphone with Samsung in 2019

Like other carriers, Sprint is working hard on bringing the next generation of cellular connectivity to customers. In fact, the company has even announced that it's working with HTC and Qualcomm on a new 5G smart hub.
Mobile

Samsung partners with AT&T to create a multi-band 5G smartphone for late 2019

Ready to experience a radical transformation in mobile communication? AT&T is launching mobile 5G in cities across the country over the next few months. Here's everything you need to know about the AT&T 5G rollout.
Mobile

Qualcomm's 3D Sonic fingerprint sensor could make your next phone more secure

Almost exactly a year after the launch of the Snapdragon 845, Qualcomm took the wraps off of its next-generation mobile platform, the new Snapdragon 855. The new chip puts an emphasis on A.I. performance.
Movies & TV

Movies Anywhere service adds Comcast films to its library and devices

Movies Anywhere lets you watch movies purchased from different services all in one place, and it just got even better with the addition of Comcast, which joins Microsoft, Amazon, iTunes, Google Play, Vudu, and FandangoNow.
Web

Can Microsoft’s Airband Initiative close broadband gap for 25M Americans?

A new report from the Federal Communications Commission (FCC) says that 25 million Americans do not have access to broadband internet. Of these, more than 19 million are living in rural communities. Can Microsoft help out?
Business

Amazon scouted airport locations for its cashier-free Amazon Go stores

Representatives of Amazon Go checkout-free retail stores connected with officials at Los Angeles and San Jose airports in June to discuss the possibility of cashier-free grab-and-go locations in busy terminals.