Nissan set to tap former tech chief to head Mitsubishi

May 24, 2016 06:03 AM EDT | Robert Garcia

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After acquiring more than 34%  of the Mitsubishi, Nissan Motor Co is planning to use their stake in placing the former global tech chief to lead the reform in the smaller company.

According to Reuters, sources from the Nissan said that the $2.2 billion buyout of 1/3 of Mitsubishi will determine the future of the company after they've been included in the fuel economy data scandal. This includes the plan of Nissan Motor Co and Mitsubishi to tap Mitsuhiko Yamashita as Mitsubishi's tech chief. The two companies are said to have been finalizing the talks just weeks after Nissan bought shares from the company.

Further, it is known that Yamashita was the Nissan's executive vice president that is in charged for product and technology research and development. He was in the position from 2005 until he ended it in 2014. The two sources who talked to the media declined for their names to be revealed since they were not given authority by the companies to speak on their behalf. Meanwhile, a spokesman from Mitsubishi didn't respond to give comments.

Economics Times reported that on Wednesday, if the news proved true, Yamashita will be the head of Mitsubishi as tech chief since it will be the finalization in the upcoming emergency board meeting. It is among the perks of Nissan as they've given huge investment in the company.

The 34%  stake of Nissan in Mitsubishi gives them the ability to atleast nominate a third of the executive personnel of the company. Nissan Chief Executive, Carlos Ghosn, released a statement saying that he's already believed that a Nissan executive is set to take position in Mitsubishi. The comment gave cue to industry analyst and bankers that Mitsubishi is set to another journey.

Mitsubishi is still on the verge of recovering since this is their third scandal in 20 years which proved hurtful to the company due to a $3 billion loss in market value. It was after they've admitted that they are at fault in fuel economy of four models in Japan.

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