Mitsubishi Motors Not to Review Alliance with Nissan

Economy

Tokyo, Nov. 20 (Jiji Press)--Osamu Masuko, chief executive officer of Mitsubishi Motors Corp. <7211>, said Tuesday his company will not review its alliance with Nissan Motor Co. <7201>.

The CEO made the comment to reporters after Nissan Chairman Carlos Ghosn was arrested by Tokyo prosecutors Monday on suspicion of underreporting his compensation in violation of the Financial Instruments and Exchange Act.

On the Tokyo Stock Exchange on Tuesday, shares of Nissan and related companies, including Mitsubishi Motors, came under heavy selling pressure.

In 2016, Mitsubishi Motors received investment from Nissan to join the Nissan group. Ghosn is also chairman of Mitsubishi Motors.

The arrest of Ghosn is widely expected to deal a blow to the global business strategy of the three-way alliance of Nissan, French auto giant Renault SA and Mitsubishi Motors.

[Copyright The Jiji Press, Ltd.]

Jiji Press