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The Relationship Between Nissan And Mitsubishi

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Description of the Situation
One of the most spoken and discussed issues in the business world has become establishing the association between the Nissan and Mitsubishi car producers. After the scandal that occurred as the Mitsubishi falsified its fuel-economy tests, the cooperation with Nissan is like a lifeline to the company. Nissan's decision to buy an influential share of Mitsubishi's assets is believed to bring benefits to both participants of the process. While this deal would help the Mitsubishi corporation to improve its image after the cheating scandal, Nissan also expects to increase its profits by using the recognizability of Mitsubishi's brand in the eastern countries. Under the conditions of growing global competition in the automobile industry, the alliance between the large Japanese and European car producers is supposed to radically strengthen the positions of both companies on the market.
However, the formation of this alliance would not involve the complete merger of the companies. Nissan shared information regarding taking “a 34% stake in Mitsubishi Motors”, which would allow Nissan to gain de facto control over the processes within Mitsubishi (“Nissan Is Buying”). With one-third of the assets, Nissan would become Mitsubishi's main investor. The Nissan company has an objective of …show more content…

In the context of growing competition in the automobile industry, understanding this concept is essential for achieving success. With regard to the situation with Nissan and Mitsubishi, this concept is presenting a significant basis for the companies to enter the alliance. They believe that the union of the companies would help to overcome the ever-growing competition on the market. With respect to this, the situation with Mitsubishi is a great example of the realization of the concept of competition and its impact on the achievement of the companies in the

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