Nissan and Mitsubishi merge back-office operations

The first local evidence of Nissan’s takeover of Mitsubishi Motors has emerged in the form of shared financial services and parts warehousing in Australia.

The deal in which Nissan, which is 43.4 per cent owned by Renault, to take a controlling 34 per cent stake in the struggling Mitsubishi was formalised last October.

It was followed by a top-level review of potential synergies between both Japanese brands and led to reports of shared models including the next Navara/Triton and Patrol/Pajero.

So far no platform, technology or factory sharing deals have been announced as part of what Nissan and Mitsubishi are calling a global alliance, in which Renault is not directly involved.

However, Nissan Motor Co Australia and Mitsubishi Motors Australia today announced the establishment of a shared parts and accessories warehousing and logistics operation, which will also include Renault Australia.

The new “Australia-based initiative” will see all three companies share warehousing space and logistics support for the national distribution of each brand’s parts and accessories.

The operation, which will be based at an all-new 36,000 square-metre warehouse facility in the Melbourne suburb of Truganina, is claimed to deliver various benefits to both companies due to greater economies of scale.

“This is a milestone development in Nissan’s new alliance with Mitsubishi,” said Nissan Australia managing director and CEO, Richard Emery..

“This collaboration has opened the door to many important synergies, including the sharing of parts storage, distribution and logistics here in Australia. This is an important investment with many benefits for our respective customers and dealers.”

For his part, Mitsubishi Motors Australia CEO Mutsuhiro Oshikiri said the arrange is one of the first alliance-based projects globally.

“We are pleased it will assist us to achieve greater efficiency through cooperation with our local alliance partner, Nissan Australia, to deliver a better service to our respective customers.”

The companies said the new ‘master warehouse’ in Melbourne’s west, which will be ready for operation by December, will be one of one of Australia’s largest automotive logistics facilities.

It will employ “industry-leading technologies and processes for the fast and efficient movement of automotive parts and accessories, and has been designed to achieve a six-star rating from the Green Building Council.

At the same time, Nissan Financial Services Australia and Mitsubishi Motors Australia today announced the creation of a new branded financial services operation for Mitsubishi in Australia, Mitsubishi Motors Financial Services.

The new entity, which will also be open for business in New Zealand from tomorrow (June 6), follows the launch today in Tokyo of Mitsubishi Motors Financial Services.

It sees Nissan Financial Services Australia take responsibility for wholesale and retail financial services and products for participating Mitsubishi dealerships across Australia.

“This is one of the first major milestones of our new alliance with Mitsubishi,” said Nissan Financial Services managing director Peter Jones.

“Outside of our planned collaborations on technology sharing, common vehicle platforms, and joint plant utilisation, today’s announcement is among the first major non-manufacturing-related developments in the new global alliance between Mitsubishi and Nissan.”

Oshikiri said the move will see competitive branded finance become available to Mitsubishi customers and dealers Down Under.

“This will bring benefits to our participating Mitsubishi Motors Australia dealers and our customers through the provision of competitive branded finance offering,” he said.

Renault-Nissan chief Carlos Ghosn and Mitsubishi’s newly appointed global boss Trevor Mann are in Australia this week.