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ECONOMY

Nissan reports bailout plan for Mitsubishi Motors to CCS Suga in advance

  • May 13, 2016
  • , Yomiuri , p. 3
  • Translation

The government welcomes Nissan Motor’s de facto bailout of Mitsubishi Motors, which is in trouble over a fuel efficiency data falsification scandal. Chief Cabinet Secretary Yoshihide Suga stated at a news conference on May 12: “We hope for maximum effects in terms of organizational restructuring to prevent recurrence of scandals, strengthening the competitiveness of the Japanese auto industry, and contribution to regional economy and employment.”

 

Ahead of the official announcement of the tie-up plan, Nissan Senior Vice President Hitoshi Kawaguchi visited the Kantei (Prime Minister’s Official Residence) on the morning of May 12 to meet with Suga. It is very unusual for business executives to report to top government officials on corporate business decisions. Nissan’s head office is located in Nishi Ward, Yokohama City, which is within Suga’s constituency. It appears that “Mr. Suga has a strong interest in developments involving Nissan,” according to a government source.

 

Local communities are very hopeful that Mitsubishi’s coming under Nissan’s control will protect jobs.

 

In Okayama Prefecture, where 10% of workers in the manufacturing industries are employed by auto-related companies, there had been concern that policies to support small and mid-size enterprises doing business with Mitsubishi Motors and to protect jobs might become a serious liability for the government and the ruling parties ahead of the House of Councillors election this summer.

 

A senior official of the Ministry of Economy, Trade and Industry says that the government expects that the tie-up between the two carmakers will “protect the regional economy and employment.” (Slightly abridged)

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