Nissan Motor Co is taking a 34 percent stake in scandal-ridden Mitsubishi Motors Corp in what Nissan CEO Carlos Ghosn says is "a win-win" deal.
Ghosn appeared with Mitsubishi Motors Chairman Osamu Masuko in a hastily called joint conference on Thursday in Yokohama, where Nissan is headquartered.
Ghosn said Nissan would invest 237 billion yen (NZ$3.19 billion) to become the top investor in Mitsubishi Motors.
Masuko said Mitsubishi group companies would continue to hold stakes in the automaker.
Mitsubishi Motors has been recently rocked by a scandal over cheating on mileage tests to inflate mileage for minicar models.
Masuko apologised for the scandal but welcomed the alliance with Nissan.
Ghosn, who engineered Nissan's alliance with Renault, said adding Mitsubishi would be a plus in sharing platforms, purchasing and technology.