Mitsubishi May Not Be what PSA Needs
"Peugeot's issues aren't easy ones to fix -- it's not just a matter of a cost-cutting program here and there," said Credit Suisse analyst Stuart Pearson. "It lacks scale and it's too Eurocentric. That can be painful and expensive to fix," he added, warning that "buying into Mitsubishi could be an expensive way to fix it."
This deal seems to be nothing like the 10-year deal between Renault and Nissan, as Mitsubishi is believed to be nothing like Nissan.
"Nissan is in a much better strategic and financial position than Mitsubishi," said Morgan Stanley analyst Adam Jonas. "Mitsubishi is a shadow of what Nissan is, or even what Nissan was, in terms of market position."
"Mitsubishi makes fewer than a million cars a year. It's a well-managed company but its market positions in every single market from Japan to the U.S. to Latin America, everywhere, are very, very weak," said Jonas.
Based on production for the first 10 months of the year, Mitsubishi is ranked seventh out of Japan's eight carmakers.