Nissan Strengthens Alliance with Acquisition of 34% Stake in Mitsubishi Motors

Enlarged Alliance Ranks Among Top Three Global Automotive Groups

Jeddah, Saudi Arabia– October 23, 2016

Nissan Motor Co., Ltd., (“Nissan”) today completed its acquisition of a 34% equity stake in Mitsubishi Motors (“MMC”) and became its largest shareholder.

MMC will also become part of the global Alliance with Nissan and Renault. With the addition of MMC, the Alliance will be in the world’s top three automotive groups by global volumes, with sales of 10 million units in fiscal year 2016.

Nissan Chairman and Chief Executive Officer Carlos Ghosn announced that Nissan and MMC would collaborate on joint purchasing, deeper localization, joint plant utilization, common vehicle platforms, technology-sharing and an expansion of the companies’ combined presence in both developed and emerging markets.

“The combination of Nissan, Mitsubishi Motors and Renault will create a new force in global car-making,” said Ghosn. “It will be one of the world’s three largest automotive groups, with the economies of scale, breakthrough technologies and manufacturing capabilities to produce vehicles to serve customer demand in every market segment and in every geographic market around the world.”

Ghosn predicted that through its partnership with MMC, Nissan would target synergy benefits worth 24 billion yen in fiscal year 2017, rising to 60 billion yen in fiscal year 2018 and beyond. The gains will contribute to increased earnings per share worth an estimated 4 yen per share in fiscal year 2017 and 10 yen per share in fiscal year 2018 – on top of any earnings accretion linked to Nissan’s overall shareholding in Mitsubishi Motors.

Nissan offered its assistance at the request of Osamu Masuko, president and chief executive officer of MMC, following the company’s fuel economy crisis. The two companies have cooperated on kei-cars for the Japanese market over the past five years.

“We are committed to assisting Mitsubishi Motors as it rebuilds customer trust,” said Ghosn. “This is a priority as we pursue the synergies and growth potential of our enlarged relationship.”

As part of this strategy, Nissan has nominated four representatives to the Board of MMC, including Ghosn as chairman-elect.

The other nominees are Hitoshi Kawaguchi, chief sustainability officer and head of global external affairs; Hiroshi Karube, global controller and global asset manager; and Mitsuhiko Yamashita, Nissan’s current representative on the Mitsubishi Motors board.

At Masuko’s request, Yamashita joined the company earlier this year as executive vice president of development and as a member of its executive committee.

Ghosn has announced a number of other management changes, effective November 1, to allow him to continue to focus on maintaining Nissan’s momentum in delivering performance, while at the same time supporting Masuko at MMC.

Ghosn has proposed to the Nissan Board, which has approved, the appointment of Hiroto Saikawa, currently chief competitive officer, as co-chief executive officer.

Saikawa will be succeeded as chief competitive officer by Yasuhiro Yamauchi, currently Alliance executive vice president of purchasing.

Veronique Sarlat-Depotte, currently deputy to Yamauchi will assume the responsibility as Alliance executive vice president of purchasing and head of the Renault Nissan Purchasing Organization. She will be supported by Makoto Uchida who will take responsibility for purchasing at Nissan.

Also at the request of Masuko, the management team of MMC will be further strengthened by current Nissan Chief Performance Officer Trevor Mann, who will become chief operating officer of MMC.

Mann will be replaced as chief performance officer by Jose Munoz who will continue as chairman of Nissan’s North American region.

Ghosn concluded: “At a time of unprecedented change in the global auto industry, this strategy will build on our existing strengths and management capabilities to ensure increased competitiveness, better products for our customers and attractive returns for shareholders.”

-Ends-

About Nissan Motor Co., Ltd.
Nissan is a global full-line vehicle manufacturer that sells more than 60 models under the Nissan, Infiniti and Datsun brands. In fiscal year 2015, the company sold more than 5.4 million vehicles globally, generating revenue of 12.19 trillion yen. Nissan engineers, manufactures and markets the world's best-selling all-electric vehicle in history, the Nissan LEAF. Nissan’s global headquarters in Yokohama, Japan, manages operations in six regions: ASEAN & Oceania; Africa, Middle East & India; China; Europe; Latin America and North America. Nissan has a global workforce of 247,500, and has been partnered with French manufacturer Renault under the Renault-Nissan Alliance since March 1999.

About Nissan Saudi Arabia
Nissan has a strong heritage in KSA, dating back to the early 50’s. Nissan is committed to becoming a powerful force in the automotive sector in the Kingdom of Saudi Arabia, through a host of new models, a completely structured sales network and firm focus on providing customers the best-possible service.

In November 2014, Nissan expanded its Saudi Arabian operations by announcing the creation of ‘Nissan Saudi Arabia Co. Ltd.’ as a national sales center for Nissan Middle East. Nissan Saudi Arabia Co. Ltd. is a joint venture formed with Nissan’s partner, Khaled Juffali Company. This partnership is playing an important role in bolstering Nissan’s presence in the biggest market in Middle East. Nissan established a new, fully-fledged headquarters in Jeddah staffed with over 100 high-caliber employees for the operation.

Earlier in September 2013, Nissan announced the appointment of Alissa Auto as an authorized dealer in the Kingdom. With a shared vision to provide high quality automotive products and dependable after-sales services to customers, Nissan’s partnership with Alisa Auto renewed the bond with the kingdom and re-established strong sales and services network. Alissa auto – which is part of Alissa holding company - has over 60 years in serving Saudi Arabia automotive customers with a success built on its business ethics and customer focus.

To further achieve sustainable growth and customer satisfaction excellence, Nissan announced the appointment of Petromin as a second authorized dealer in March 2016, expanding its businesses to meet market needs. Nissan Petromin will serve its Kingdom wide customers through a network of sales showrooms and service outlets with the unparalleled service network and quality operations of Petromin. Nissan plan to surpass all its competitors and achieve the number one position when it comes to excellence in customer service.

For Nissan Middle East FZE media enquiries:
Yolande Pineda
Director, Corporate Communications Department
Nissan Middle East FZE
Tel: +971 4 881 7500
Fax: +971 4 881 9747
E-mail: yolande@nissan-me.ae

For Nissan Saudi Arabia media enquiries:
Abdalla Suboh
Corporate Communications and Sponsorship Manager
Nissan Middle East
Tel: +966 12 663 7186 ext. 121
E-mail: Abdalla.suboh@nissan-me.ae

Hussein Nasrallah
Senior Media Relations Manager
Memac Ogilvy PR
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Mob: +966 50 466 3187
E-mail: Hussein.nasrallah@ogilvy.com

Majdi Ghraizi
PR Account Executive
Memac Oglivy PR
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E-mail: majdi.ghraizi@ogilvy.com