Mitsubishi Motors Makes a Fast Recovery from a Troublesome Year

Mitsubishi Corporation’s Decision to Increase Stake in Mitsubishi Motors a Green Flag?

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>This year’s (April 2016) fuel emission scandal resulted in one-off extraordinary losses of Y167bn, taken this year, and forced the company into the arms of Nissan, which pumped in Y237bn (Y468 a share) for a 34% stake. Big change is now afoot at this company. It was clearly struggling to go it alone. It was just too small, so for Mitsubishi, this “merger” makes a lot of sense.  It now has the benefits of much closer integration as well as management by its new parent. It also has some Y500bn in…</p>

This year’s (April 2016) fuel emission scandal resulted in one-off extraordinary losses of Y167bn, taken this year, and forced the company into the arms of Nissan, which pumped in Y237bn (Y468 a share) for a 34% stake. Big change is now afoot at this company. It was clearly struggling to go it alone. It was just too small, so for Mitsubishi, this “merger” makes a lot of sense.  It now has the benefits of much closer integration as well as management by its new parent. It also has some Y500bn in…

Mitsubishi Motors

The Dawn of a New Beginning