Nissan to Send Former R&D Exec to Struggling Mitsubishi

Nissan, which will soon own a 34-percent stake in Mitsubishi, is throwing another bone to its struggling fellow Japanese automaker.

The companies are in final stages of talks to send former Nissan executive Mitsuhiko Yamashita over to Mitsubishi, reports Reuters. Citing two sources familiar with the matter, Reuters said the appointment of Yamashita as Mitsubishi’s tech chief could be finalized as early as Wednesday.

Yamashita served as Nissan’s executive vice president in charge of product and technology R&D from 2005 to 2014. Neither Nissan nor Mitsubishi have confirmed the new appointment, although it wouldn’t come as much of a surprise if it happened. Nissan CEO Carlos Ghosn said earlier that a Nissan exec would likely help lead Mitsubishi.

Mitsubishi has admitted to overstating fuel economy data on certain vehicles sold in Japan. After the news broke, two key executives resigned, including Mitsubishi Motors President Tetsuro Aikawa and quality and product strategy chief Ryugo Nakao. In a statement at the time, Mitsubishi lamented that the scandal “caused tremendous trouble and concern to our customers and all of our stakeholders.” Mitsubishi is expected to close its share transfer deal with Nissan by the end of this year.

Time will tell how the deal will affect both automakers. The fuel economy issue is Mitsubishi’s third scandal in two decades, and the automaker has seen its market value decline by a whopping $3 billion.

Source: Reuters

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