In August Mitsubishi admitted to falsifying the fuel efficiency of two of its models which included cars it sub-contract manufactures for Nissan. New of the scandal could have sunk Mitsubishi on top of the overall net effect of many, many workers being out of a job. There was a short term loss, a suspension of vehicle sales and a drop in the company’s market value. Sensing an opportunity Nissan-Renault subsequently bought a 34 percent controlling stake in Mitsubishi and the process of doing so has now been finalised after a period of due diligence. The Nissan-Renault CEO, Carlo Chosn, has been quick to make changes. Ghosn has reduced Mitsubishi’s board of high ranking executives and installed a key Nissan executive as COO of Mitsubishi. Ghosn becomes the Chairman of Mitsubishi thereby replacing Osamu Masuko whose duel role as Chairman and president is reduced to President. Mitsubishi’s 34 percent controlling stake cost an estimated $2.29bn dollars, the deal will enable the Nissan-Renault-Mitsubishi alliance to implement an estimated $241m dollars in annual savings. Nissan will be able to share resources with Mitsubishi such as platform sharing and technology development. Already Nissan will be able to pool Mitsubishi’s plug-in hybrid system and retail finance services iand intergrate it into the Nissan-Renault structure. Ghosn is confident he can turn around Mitsubishi’s fortunes, the partnership will develop the massive economies of scale between the three brands, the triple alliance could possibly rival Toyota for total vehicle output which stands at around 10m cars per year. Mitsubishi recently announced a net loss forecast to $3.32bn dollars for the fiscal year ending in March, 2017. The only way Ghosn will make savings is by closing under-performing factories and that will ultimately lead to job losses. This is the same modus operandi Ghosn used to turn around Nissan when it was in a position of weakness back in 1999. Mitsubishi admitted that over 1 million vehicles had rigged fuel economy test, the damage done was immediate and not just restricted to just the number of sales but to the brands reputation. With Nissan stepping in to breach the hull and stem the flow of water from sinking the ship, it should help restore Mitsubishi’s product revival plan. But it will be a difficult path to tread for sure.