>> Japanese car giant, Nissan, swooping in for a piece of a struggling rival. CEO Carlos Ghosn on Thursday confirming his company will buy a $2.2 billion stake in Mitsubishi Motors. Nissan will own 34% of its smaller competitor, which is wrapped up in a fuel data rigging scandal. Mitsubishi has admitted cheating on fuel stats for at least four of its models including two that are made for Nissan.
Reuters Tokyo Bureau Chief, Billy Mallard, says that could be a red flag behind the scenes.>> You have to think that Mr. Ghosn is looking at the steel with a weary eye, and after all, he is buying more than one-third of a company that's been lying to him.
Mitsubishi Motors has been falsifying fuel economy data in this huge scandal, and it only came to light because some of these was in mini cars that Mitsubishi Motors makes under the Nissan badge.>> Smiling for the camera has Ghosn called the deal a win-win, so what's in it for both sides?
>> What does Nissan get? Besides the chance to write a big fat cheque, they get access to the Mitsubishi Group. Particularly, they get to take advantage of the trading network of Mitsubishi Corporation. For Mitsubishi Motors, it's clear. They get a lifeline. They get a chance at rebirth. This scandal, which is the third big scandal for Mitsubishi Motors in two decades, there were questions about the company's survivability.
>> Positive news for Mitsubishi, but the good times may be short-lived. The company is looking at an estimated $1 billion payout in compensation for fuel rigging. On Wednesday, it said it has enough cash to weather the storm, but the scandal may have affected far more vehicles than initially thought.