Mitsubishi and Nissan chairman rules out merger

Japanese carmakers Mitsubishi Motors Corp and Nissan Motor Co are not looking at plans for a merger between the two companies, according to the chairman of both firms.

Carlos Ghosn was speaking at the opening of a new factory in Jakarta, Indonesia on Tuesday, where he said that the Mitsubishi and Nissan were likely to further integrate some of their operations, but a full merger is off the table.

"Full merger is not on the table. We want Mitsubishi to reform itself," Ghosn said during the ceremony.

In 2016 Nissan bought a controlling stake in Mitsubishi for $2.3bn after the latter faced trouble after admitting to cheating on mileage tests.

The firms are to begin merging distribution operations in Southeast Asia, in order to reduce transport costs for the construction of new vehicles.

Nissan was the subject of mooted merger with Renault in 2015, as the French company has a 43% interest in the Japanese car-maker, which in turn owns a 15% stake in Renault.