Takao Kato, CEO of Mitsubishi Motors, the smaller partner in the alliance of Nissan, Renault and Mitsubishi, said on Nov. 2 that the company has not yet made a decision on whether to invest in French automaker Renault’s electric vehicles,media reported. Department makes a decision.
“It is necessary for us to gain a full understanding from our shareholders and board members, and for that, we have to study the numbers carefully,” Kato said. “We do not expect to draw conclusions in such a short period of time.” Kato revealed that Mitsubishi Motors will consider investing Whether Renault’s electric car division will benefit the company’s future product development.
Nissan and Renault said last month they were in talks over the future of the alliance, including the possibility of Nissan investing in an electric car business to be spun off from Renault.
Image credit: Mitsubishi
Such a shift could mean a dramatic change in the relationship between Renault and Nissan since the arrest of former Renault-Nissan Alliance chairman Carlos Ghosn in 2018. Negotiations between the two sides so far include Renault considering selling some of its stake in Nissan, it was previously reported. And for Nissan, it could mean an opportunity to change the unbalanced structure within the alliance.
It was also reported last month that Mitsubishi could also invest in Renault’s electric vehicle business in exchange for a stake in the business for a few percent in order to maintain the alliance, according to people familiar with the matter.
Renault’s EV business is largely aimed at the European market, where Mitsubishi has a small presence, with the company only planning to sell 66,000 vehicles in Europe this year. But Kato says being a long-term player in electric vehicles will play an important role in maintaining its position in the market. He also added that there is another possibility for Mitsubishi and Renault to cooperate on electric vehicles, which is to produce Renault models as OEMs and sell them under the Mitsubishi brand.
Mitsubishi and Renault are currently cooperating to sell internal combustion engine vehicles in Europe. Renault produces two models for Mitsubishi, the new Colt small car based on the Renault Clio and the ASX small SUV based on the Renault Captur. Mitsubishi expects annual sales of the Colt to be 40,000 in Europe and 35,000 of the ASX. The company will also sell mature models such as the Eclipse Cross SUV in Europe.
In the fiscal second quarter of this year, which ended Sept. 30, higher sales, higher-margin pricing, and a huge currency gain powered Mitsubishi’s profits. Operating profit at Mitsubishi Motors more than tripled to 53.8 billion yen ($372.3 million) in the fiscal second quarter, while net profit more than doubled to 44.1 billion yen ($240.4 million). During the same period, Mitsubishi’s global wholesale deliveries rose 4.9% year-on-year to 257,000 vehicles, with higher deliveries in North America, Japan and Southeast Asia offsetting lower deliveries in Europe.
Post time: Nov-04-2022