The $2.2 billion acquisition of a 34% equity stake in Mitsubishi by Nissan Motor Co. Ltd. last month could shake the status quo in the local automotive market by creating a new powerhouse in the industry. In terms of sales, Mitsubishi Motors Philippines Corp. (MMPC) ranks as the second largest automotive firm, while Nissan is sixth. The first five months saw MMPC take an 18.3% share of the market selling 24,601 units while Nissan registered 4.4% with 5,944 unit sales.
The merger would allow major collaboration in research and development by defraying the hefty investment cost, says Yoshiaki Kato, MMPC president and CEO. It will also allow both firms to leverage on each other’s strengths and strategize their market approach especially here in the Philippines.
However, despite the merger, the two brands will retain their identities and will continue to remain independent from each other. “Nissan comes into Mitsubishi with a majority share but the two brands are different and independent. Different company, dealer network and factory. So they are independent in everything,” he said.
Kato continues to have a positive outlook on the economy and believes that MMPC’s goal of selling 70,000 units this year, which is an aimed 29.4% growth from last year’s 2015 sale of 54,087 units, is “not too difficult to achieve”
