Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Suga

(Abridged)

Q&As

REPORTER: I have a question regarding Nissan’s plans to buy a stake in Mitsubishi Motors. The heads of both companies held a press conference earlier and announced that Nissan will be buying a stake in Mitsubishi Motors. In light of concerns that Mitsubishi Motor’s improper fuel testing has damaged the brand power and reputation of Japanese automakers, what are the Government’s expectations regarding Nissan and Mitsubishi Motors?

CHIEF CABINET SECRETARY SUGA: The Government hopes that the tie-up between these two companies is as effective as possible, including with regard to establishing a structure that thoroughly prevents any recurrence of the recent improper practices conducted by Mitsubishi Motors, strengthening the competitiveness of the Japanese automotive industry, and contributing to regional economies and employment.

REPORTER: On a related note, I understand that Mitsubishi Motors will come under the control of Nissan and will aim to restructure its business. Do you expect that becoming part of Nissan will advance the restructuring process for Mitsubishi Motors?

CHIEF CABINET SECRETARY SUGA: As I just mentioned, first and foremost I hope that this will establish a structure that thoroughly prevents any recurrence of the recent improper practices conducted by Mitsubishi Motors. The Japanese automotive industry accounts for approximately 30% of the global automotive market share. Furthermore, when considering all businesses related to the automotive industry, this accounts for approximately 10% of employment in Japan. As such, it is very much a core industry that Japan can proudly present to the world. The Government hopes that this tie-up will also further strengthen the competitiveness of the Japanese automotive industry, which will in turn contribute to the economy and employment.