Mitsubishi, Renault, and Nissan to form a new company for advanced automotive research and development

According to Kyodo News, Mitsubishi Motors Corp., Renault SA, and Nissan Motor Co. have announced earlier on Sunday that the auto giants have decided to join hands to launch an all-new company that will take on the role of research and development in the automotive industry. As per the announcement, the three auto manufacturers are calling it the next step towards advanced automotive technologies. Further details of the company are yet to be revealed. The automakers have, however, highlighted that a defined plan will be made public with the start of the new year. Experts are also expecting the move to help revitalize the alliance between the three auto manufacturers that has rusted since the arrest of former leader Carlos Ghosn.

Carlos Ghosn’s Arrest In Tokyo

Ghosn was charged with financial misconduct and was arrested in Tokyo in 2018. Pleading not guilty, Ghosn can no longer leave Tokyo as per the terms of a bail agreement worth $13.5 million. He is allowed to see his children but is prohibited from meeting his wife Carole. In the best interest of boosting cooperation and make joint operations possible, Mitsubishi, Renault, and Nissan have also announced that the partnership will see a new general secretary for supervision. Nissan has already declared Makoto Uchida as the new leader on Sunday. The 53-year-old Uchida has years of experience in supervising Nissan’s business in China. While Renault’s head of finance, Clotilde Delbos, is currently serving as the chief executive on a temporary position, the French multinational auto manufacturer is on a hunt for a suitable candidate to fill up the position on a permanent basis.

Mitsubishi, Renault, And Nissan’s Performance In The Stock Market In 2019

Official comment from Nissan regarding the alliance is yet to be received. Nissan’s performance in the stock market has been largely downbeat in 2019. Having started the year at 870 JPY, share prices dropped as low as around 645 JPY in August. With a narrow retreat, the stock is currently exchanging hands at 679 JPY. Mitsubishi’s year-to-date performance has been somewhat similar. The stock was seen trading at 586 JPY at the start of 2019. Printing a low of 421 JPY for the year so far in August, the stock is currently trading at 490 JPY as of Friday. Following the same pattern, Renault opened the year at €52.93 and is currently trading at €43.46 that marks the lowest for it in 2019. The year-to-date high is located at €63.87 in April.