Tag Archives: merger

NEWS

Honda and Nissan merger may not proceed

The Asahi Shimbun reported today that the proposed merger between two major Japanese automotive companies, Nissan and Honda, may be canceled.

According to sources close to the matter, the two companies are planning to hold a meeting to discuss the cancellation of the merger negotiations.

It is understood that Honda wanted to turn Nissan into a subsidiary; however, this plan was met with strong opposition as it did not align with previous arrangements.

When the merger plan was announced at a joint press conference last December, a holding company was set to be formed to oversee both brands, which would become the third-largest automotive company in the world, following Toyota and Volkswagen

Further surprising developments have emerged just days after reports stated that Honda and Nissan aimed to postpone their merger announcement until mid-February.

Nissan is currently grappling with a restructuring effort that includes cutting up to 9,000 jobs globally.

However, the company has not provided detailed explanations of the plan to its potential business partners, and Honda’s upper management has also complained that Nissan is moving too slowly.

In a press conference last December, Nissan President Makoto Uchida emphasized that both companies would be on equal footing.

NEWS

Honda, Nissan postpone announcement of merger plan until mid-February

Japan Today reported yesterday (February 2) that Honda and Nissan will announce their merger plan in mid-February.

According to the original plan, the second and third largest automotive manufacturers intended to make the announcement by the end of January.

During a press conference held last month, both parties agreed to start discussions to form a new company by 2026.

Honda’s CEO, Toshihiro Mibe, stated that they expect Nissan to take appropriate actions in restructuring as a prerequisite for the merger.

In November, Nissan announced a reduction of up to 9,000 jobs worldwide and a 20 percent cut in global production capacity after the company reported a profit decline of over 90 percent for the period from April to September.

As part of its restructuring efforts, Nissan is also planning to offer early retirement programs for workers at three plants in the United States and to reduce the workforce in Thailand.

Honda appears to be somewhat skeptical and is calling for more drastic measures to ensure Nissan’s successful recovery.

According to another source, Nissan’s alliance partner, Mitsubishi, is less inclined to join the new merged entity.

NEWS

Mitsubishi will not join Honda-Nissan merger – report

The news outlet Japan Today reports that Mitsubishi Motors Corp will not be joining the planned merger formed between Nissan Motor Co and Honda Motor Co.

Instead, the company will focus on strengthening its cooperation with the two firms, according to a source close to the matter last Friday.

This latest development reflects Mitsubishi’s concerns about the risks of losing management control if they were to join the Honda-Nissan alliance.

In a statement released last Friday, Mitsubishi mentioned that it is considering various possibilities and has not yet decided on a specific direction.

Mitsubishi CEO Takao Kata told reporters in Tokyo, “Nothing has been decided.”

Honda and Nissan, the second and third largest automotive manufacturers in Japan, announced a merger plan last year to form a new company that will create the world’s third-largest automotive group, in order to compete against the electric vehicle manufacturers from the United States and China.

At that time, Mitsubishi Motors was not ready and stated that a decision about joining the new alliance would be made by the end of January 2025.

Throughout 2023, the combined sales of Honda, Nissan, and Mitsubishi reached eight million units, which still fell short of Toyota’s sales figures (11.23 million units) and Volkswagen AG’s (9.24 million units).

Honda and Nissan aim to finalize all merger discussions by June 2025.

NEWS

Honda and Nissan initiate merger talks; will Mitsubishi join?

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Honda Motor Co. and Nissan Motor Co. have confirmed in a statement that discussions are ongoing to establish a new company, which is expected to be finalized by 2026.

According to a report by Mainichi JP, this move is seen as a way to create the world’s third-largest automotive group, behind Toyota and Volkswagen, to compete against American and Chinese manufacturers in the electric vehicle segment.

Honda and Nissan, the second and third largest manufacturers in Japan, aim to finalize the discussions by June.

Meanwhile, Mitsubishi Motors Corporation will decide by the end of January 2025 whether to join the new company or not.

In an effort to become more competitive in the market, Honda and Nissan have agreed to collaborate on research and development (R&D), standardize vehicle platforms, and share components across various product segments, in addition to optimizing existing production systems and facilities.