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Nissan to buy major stake in Mitsubishi following fuel scandal

After admitting to manipulating official fuel economy tests on over 600,000 cars, Mitsubishi stocks went into a freefall wiping $2.5billion from the car maker’s market value.

The company’s future looked grim, until now. Bloomberg reports that Nissan Motor Company may invests more than $2.5 billion in hopes it can take over Mitsubishi’s automotive arm.

Nissan is reportedly in the final stages of negotiations which could see them own a 34% stake in Mitsubishi Motor Corporation. The large stake would make the Yokohama-based company majority shareholder and allow them to continue selling their rebadged Mitsubishi Kei cars. The Kei makes up close to 30% of their business in Japan.

Going forward, Nissan aims to continue working with Mitsubishi and hopes to tackle the electric car market in Asia, where Mitsubishi performs better.