KIMIMASA MAYAMA/EPA
Makoto Uchida, CEO da Nissan e Toshihiro Mibe, CEO da Honda
Japanese companies Honda and Nissan announced this Monday plans to join forces, form the third largest car manufacturer in the world by sales and face the transition from fossil fuels.
The two Japanese companies – Honda and Nissan – signed a memorandum of understanding with which Mitsubishi Motors, the smallest member of the Nissan alliance, also agreed to participate in negotiations on the integration of their businesses.
“We anticipate that if this integration comes to fruition, we will be able to offer even greater value to a broader customer base,” said Nissan CEO, Makoto Uchidain a statement.
Japanese car manufacturers are being passed over compared to its big rivals electric vehiclesso they want to try to cut costs and make up for lost time.
News of a possible merger emerged earlier this month, with unconfirmed reports that talks about closer collaboration were partly driven by the company’s aspirations. Foxconnthe Taiwanese iPhone maker, to join Nissan, which has an alliance with Renault SA of France and the Mitsubishi.
A merger could result in a giant valued at more than $50 billion (48 billion euros), based on the market capitalization of the three car manufacturers.
Together, Honda, with the alliance of Nissan and Renault SA of France and the small Mitsubishi Motors Corp, would constitute competition worthy of Toyota Motor Corp, which has technological partnerships with the Japanese Mazda and Subaru, and with the German Volkswagen AG.
“Not enough” for Toyota
Even after a merger, the Toyotawhich launched 11.5 million vehicles in 2023, would continue to be the leading Japanese automotive manufacturer. If they come together, the three smallest companies will produce around 8 million vehicles.
In 2023, Honda sold 4 million cars and Nissan produced 3.4 million. Mitsubishi Motors manufactured about one million.
Nissan, Honda and Mitsubishi announced in August that they would share electric vehicle components such as batteries and jointly research autonomous driving software to better adapt to changes centered on electrification, following a preliminary agreement between Nissan and Honda established in March.
Honda solidarity saves Nissan
Honda, Japan’s second-largest car manufacturer, is widely seen as the only likely Japanese partner capable of rescuing Nissanwhich has faced difficulties following a scandal that began with the arrest of its former president, at the end of 2018, on charges of fraud and misuse of company assets, allegations he denies. He was eventually released on bail and fled to Lebanon.
In statements made this Monday to journalists in Tokyo via conference call, Ghosn ridiculed the planned merger, classifying it as a “desperate measure”.
