Cash strapped Nissan may have found its savior: Honda. According to a report published by Nikkei (via Reuters), the two Japanese automakers have entered talks for a possible merger.
Japan’s second and third biggest automakers, Honda has a market capitalization of 5.95 trillion yen, while Nissan’s is 1.17 trillion yen. Combined, they have global sales of around 7.4 million vehicles.
If the planned merger comes into fruition, it will be the biggest in the auto industry since the merger between Fiat Chrysler and PSA that created Stellantis.
The Nikkei report says the automakers are expected to sign and announce a memorandum of understanding soon for the new merged entity. Nissan will become the top shareholder with a 24 percent stake.
The two automakers are also keen to bring in Mitsubishi Motors into the merger as well.
Nissan has been reeling from weak demand in China and the U.S., prompting the Japanese automaker to cut costs and production.
In a response to the story, Honda and Nissan issued statements saying, “no merger had been announced by either company.”
French automaker Renault, a major Nissan shareholder, said it had no information and declined to comment.
Mitsubishi Motors also did not comment on the report.
Wow, two trash companies merging.
ReplyDeleteTheir core strengths are overlap in many areas (compact cars, niche sports cars, compact SUVs, etc.) though Nissan can contribute in areas like pickup trucks, vans and full-size SUVs. Honda hasn't been agile recently, too, spending its time daydreaming of moving upmarket ala-Mazda. Consolidation of their hybrid technologies could be their strong point in the future, though full EVs really need to match the scale of the Chinese to bring costs down. That last point is orders of magnitude easier said than done.
ReplyDeleteHonda for their superior engines, transmissions, and monocoque chassis, Nissan for their EV development, interior technology, and body-on-frame platforms, Mitsubishi for their PHEV and 4WD diesel powertrains. The three could nicely complement each other.
ReplyDeleteNissan+renault+mitsu+
ReplyDeletehonda-- they need all the merger they can get to survive the china cars powerhouse onslaught.
The china onslaught is a strategic move to overwhelm the market. But even Chinese authorities know that majority will shutdown and only a few brands will remain.
ReplyDeleteNissan failing is not new. Years before the arrival of China cars they were already in deep trouble. Only now it seems China cars are the problem but it is not. The US doesn't have China cars yet their sales there is plummeting.
ReplyDeleteUS and Canada already have Mercedes (Benz), Volvo, Lotus and Aston Martin, both are owned by Geely...
DeleteRoot cause is an outdated corporate culture.
ReplyDelete10 yrs back, everybody would call you crazy to say China will dominate the car industry. Amazing, hats off to the Asian dragon. Though, the long noses are still dreaming of it failing. Good luck to that. Sanctions after sanctions. Ban after ban as if it's at war with China. It just keeps getting stronger. Now it's the Tariff Man's turn...
ReplyDeleteCrazy but China dominate the car industry ONLY IN CHINA🤣🤣🤣. Other market not yet crazy. ban after ban, sanction aftet sanction bcoz china dont play fair, its economy going downhill, foreign companies leaving, they have overcapacity, dump products to other countries below cost to destroy other countries industries and then dominate. But now the TARIFF MAN was back in white house.
DeleteRemember people laughing and making Jokes about Xiaomi na Siomai daw,Huawei etc.
DeleteWith 1B people,
China can't develope a Game, now Tencent Netase Hoyo are Dominating
People never learn,they always underestimate the Chinese,hangang 1 day sobrang laki na
If that alliance between Nissan and Honda were to live shortly, then we may explain that in the future, Toyota could attempt to acquire both (including Mitsubishi) and use the three of them as an advantage for the Corolla manufacturer...
ReplyDelete