"Sources: Honda, Nissan seen inking merger soon
6 hours ago
Sources say Honda Motor and Nissan Motor are expected to sign a basic merger agreement soon. Japan's second- and third-largest automakers are considering forming a holding company to improve competitiveness by sharing technologies and costs.
The two companies agreed in August to develop common software platforms and standardize parts in electric vehicles including sharing model specifications and parts supply.
Discussions about a strategic partnership in areas such as electrification were announced earlier in March.
The automakers face intensifying competition from foreign rivals. Tesla of the US and China's BYD are taking the lead in EVs, autonomous driving and software development.
Nissan's net profit plunged almost 94 percent in the six months through September from a year earlier, partly due to sluggish sales in the US.
The automaker said last month that it will reduce global production capacity by 20 percent and cut 9,000 jobs by March 2027. It also announced management changes last week, including naming a new chief financial officer.
Nissan is the top shareholder in Mitsubishi Motors."
The merger talks with Honda may include discussions about whether Mitsubishi would be included in the possible holding company."
Sources say Honda Motor and Nissan Motor are expected to sign a basic merger agreement soon. Japan's second- and third-largest automakers are considering forming a holding company to improve competitiveness by sharing technologies and costs.
www3.nhk.or.jp
It seems the merger is off.
"Honda-Nissan Merger In Serious Trouble After Nissan Rejects Offer
Feb 4, 2025
Back on December 18, 2024, we ran a story about
Honda and Nissan entering into talks on a possible merger to save a struggling Nissan.
A lot can change in seven weeks. According to one of Japan’s daily newspapers, Yomiuri Shimbun, dark clouds have now begun to hover over the merger talks between Honda and Nissan. The newspaper points out that Honda approached Nissan with a proposal to make Nissan a subsidiary, but Nissan, which would lose control of its management, strongly opposed the idea. This development could lead to the talks breaking down altogether.
On 4 February, a Nissan executive, who did not wish to be named, said, “It is almost impossible to meet the conditions acceptable to the shareholders of both sides. It no longer seems possible to merge.”
There's strife of the horizon as Nissan vehemently opposes Honda's suggestion of making the struggling carmaker its subsidiary.
www.forbes.com
Honda Is Impatient With Nissan’s Hesitation
In December last year, the
two companies announced that they would enter into talks to establish a new joint holding company in August 2026 and delist both companies. This latest update comes as a struggling Nissan has yet to convince Honda that the company is on track for a successful business restructure, a premise the two companies had agreed upon before the planned merger.
However, Honda, impatient with Nissan’s delay, took the initiative by proposing that Nissan become its subsidiary and leaned towards a policy of forcing it to carry out the restructuring. Honda's proposal is expected to come up against vehement opposition from Nissan over concerns that its autonomy could be challenged. In its defense,
Nissan noted that it gained more flexibility and autonomy after its long-time French partner Renault agreed in 2023 to reduce its stake in the Japanese automaker.
A Breakdown In The Talks Seems Unavoidable
The Nissan side has been in intermittent talks since the end of last week, and is coming to the conclusion that it will not accept the subsidiary idea. Honda, for its part, has said that if their approach is rejected, a breakdown of the talks will be unavoidable.
The two companies had initially planned to indicate the direction of talks by the end of January, but on January 31 they announced that they would postpone the discussions until mid-February.
On February 4, Nissan stated, “We hope that the talks will not break down, but [a business merger] is tough.” Meanwhile, Honda said, “Nissan lacks a sense of urgency. We don’t think Honda can afford to negotiate with them any longer.”
In November last year, Nissan, hit by a rapid deterioration of its performance, announced that it would cut 9,000 jobs worldwide and reduce its global production capacity by 20 percent. But Honda sees these moves as insufficient and sluggish in execution.
Mitsubishi To Sit Back, See How Things Pan Out
At a press conference in December, Honda President Toshihiro Mibe stated that “unless (Honda and Nissan) can become two independent companies, the consideration of business integration will not be feasible.” That thought now seems to have changed a little.
Mitsubishi Motors, Nissan’s largest shareholder, had also considered joining the talks on the merger, but is leaning towards maintaining its independence for the time being. At its financial results press conference on February 3, Mitsubishi said it would decide on the nature of its involvement after Honda and Nissan's decision was known."
There's strife of the horizon as Nissan vehemently opposes Honda's suggestion of making the struggling carmaker its subsidiary.
www.forbes.com
