2011 Mitsubishi Galant on 2040-cars

Auto blog

Nissan may take control of struggling Mitsubishi Motors

Update: The reports were largely correct. Nissan will take a 34 percent stake in Mitsubishi for roughly $2.2b. Read all about it here. Reports say Nissan will buy a controlling stake in Mitsubishi Motors, either 30 or 34 percent, for about 200 billion yen or $1.84 billion. Nissan and Mitsubishi motors are currently part of a joint venture, NMKV, to build minicars together. Nissan is also responsible for reporting fuel-economy discrepancies with cars built under the joint-venture agreement, which put Mitsubishi in its current weakened state. Earlier today, reports surfaced that the fuel-economy issues were wider ranging than originally thought. Mitsubishi now admits that all of its Japanese-market cars sold since 1991 could have had faked fuel-economy data. Shares of Mitsubishi Motors have dropped by about half since the scandal was uncovered, opening the door for a takeover. While Nissan is a much larger company, it can benefit from Mitsubishi's 60-percent share of Japan's minicar market. The two companies also had plans to build electric vehicles together in the joint venture. Japan's Nikkei reports that talks are ongoing between the company and that a decision could be made Thursday by the companies' boards. Related Video: News Source: Nikkei Green Mitsubishi Nissan

Watch Mitsubishi Express van bend its way to 0-star crash test rating

Mitsubishi became a champion of economies of scale when it joined the Renault-Nissan alliance in 2016, but the merger triggered at least one undesirable side effect. The Express, a badge-engineered version of the Renault Trafic van, received a zero-star crash test rating from the Australasian New Car Assessment Program (ANCAP). Released in Australia and in New Zealand in 2020, the Express was damned by the safety watchdog for lacking chest protection, a central airbag to prevent the occupants from hitting each other and an airbag for the passenger sitting in the middle of the three-person bench. ANCAP also noted the model is not available with electronic driving aids, like automatic emergency braking, pedestrian detection and lane-keeping assist. Mitsubishi Express crash test View 8 Photos Consequently, the Express scored 55% for adult occupant protection, 40% for vulnerable road user protection, and 7% for safety assist. ANCAP argued the Express is a safety hazard even to motorists not traveling in it. "The front structure of the Express presented a high risk to the occupants of an oncoming vehicle," it wrote, adding that this gave the van a penalty. It pointed out that more driving aids would have increased the rating, however. While vans often lag behind in the safety department, scoring zero stars is highly unusual, especially in 2021; the last-generation Express managed to score a one-star rating in 2011. The Toyota HiAce tested in 2019 received a five-star rating, while the made-in-China LDV G10 managed to score three stars in a 2015 crash test. In Europe, the Trafic that the Express is based on earned a three-star rating in 2015, though tests have gotten stricter since. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade