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1st LD: Japan's two major automakers to start capital tie-up

Xinhua, May 12, 2016 Adjust font size:

Japan's two major automakers Nissan and Mitsubishi Motors on Thursday agreed to start talks on capital tie-up and Nissan will take 34 percent of Mitsubishi Motors stake.

The move came after a fuel economy data manipulation scandal of the Mitsubishi Motors.

Nissan President Carlos Ghosn said in a joint press conference in Yokohama that Mitsubishi Motors will overcome the current situation with Nissan's help and it is a win-win deal for both companies.

For his part, the head of Mitsubishi Motors first apologized for the emission scandal and said the tie-up with Nissan is helpful to restore customers' trust and stabilize Mitsubishi Motors business.

Mitsubishi Motors is found recently manipulating fuel economy data and therefore has suspended its minicar production at a factory in Okayama Prefecture in western Japan.

The scandal caused both automakers' sales of minicars with engines no larger than 660 cc to roughly halve in April, according to local reports. Endit