Complementarities between Nissan and Mitsubishi
- While Nissan is in the process of taking control of Mitsubishi Motors, it is interesting to analyse the complementarities between the two carmakers.
- Product range complementarity: Sedan/SUV breakdowns of Nissan and Mitsubishi vehicle sales are very similar at worldwide level: in both carmakers, sedans account for 40% of production in 2015, and SUVs for 36% during the same period. However, the MPVs share is higher at Nissan (9% vs 2% for Mitsubishi), while pick-ups share is more important at Mitsubishi (15% vs 7% for Nissan). It is to be noted that Mitsubishi sedans belong mostly to the A segment (K-cars).
There is therefore an obvious complementarity and potential synergies between the two carmakers.
There is therefore an obvious complementarity and potential synergies between the two carmakers.
- Geographical complementarity: Nissan is a global carmaker, while Mitsubishi sells mainly in Japan and in ASEAN, where Nissan is less present. During these last years, Mitsubishi closed its Australian plant (2008), its European plant (2012) and its American plant (2015). Meanwhile, Nissan has not closed any plants but conversely opened new ones.
- In terms of production volume, Nissan has produced 4,5 times more than Mitsubishi (2,5 times in 2005). Mitsubishi sales dropped significantly in 2015 (-13,5%) while Nissan sales increased strongly (+7,5%). Moreover, Nissan is composed of three brands, well positioned: Datsun for the entry range, Nissan for the middle range and Infiniti for the premium market, while Mitsubishi has only one brand. Finally, the case related to the consumption of its engines, having recently come out in Japan, will certainly weaken Mitsubishi in 2016.
- The Mitsubishi’s acquisition is therefore a good opportunity for Nissan, both from financial and product range points of view.
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