TOKYO (Reuters) – Mitsubishi Motors Corp’s <7211.T> former chairman Osamu Masuko has died from coronary heart failure, the Japanese automaker stated in a press release on Monday. He was 71.
Masuko, a veteran of the Mitsubishi conglomerate, had simply weeks in the past resigned as chairman citing well being causes. He turned the automaker’s president in 2005, and oversaw the creation of the partnership between Mitsubishi and Nissan Motor Co <7201.T>.
Mitsubishi Motors stated he died on Aug. 27.
“(H)e constructed stable relationships with the administration of companions, the Alliance corporations and the Mitsubishi Group via good communications by leveraging his character and in depth connections,” the corporate stated.
The previous chairman’s dying comes because the alliance between Mitsubishi, Nissan and French automaker Renault SA
Masuko was on the helm of Mitsubishi throughout a 2016 scandal during which the automaker was discovered to have overstated the mileage on its automobiles. An investigation uncovered slack governance and strain on resource-starved engineers as power points on the firm.
The scandal – Mitsubishi’s third in 20 years – pummeled earnings and additional tarnished the automaker’ s model. On the top of the furore, Nissan lent its smaller rival a lifeline, providing it $2.2 billion for a 34% controlling stake.
The deal was agreed between Masuko after which Nissan CEO Ghosn, and introduced Mitsubishi in as a junior accomplice within the Nissan-Renault automotive alliance.
Masuko later denounced his ties with Ghosn following the latter’s 2018 arrest in Japan over suspected monetary misconduct.
All three members of the alliance are at present mired in monetary issues, after years of aggressive enlargement insurance policies below Ghosn’s management resulted in falling car gross sales.
An additional drop in international automotive demand because of the coronavirus pandemic has exacerbated these issues, and Mitsubishi, Nissan and Renault are every bracing for steep annual working losses this 12 months.
(Reporting by Chang-Ran Kim and Naomi Tajitsu; Enhancing by Chris Gallagher and Hugh Lawson)