Honda and Nissan are rumored to be in merger talks which could also bring Mitsubishi into the fold, according to a recent report by Nikkei.
Could this be the jolt Japanese carmaking has been seeking?
If the companies merge, annual sales could go past 8 million units. Yes, that still falls short of Toyota’s towering 11.2 million in 2023, but it would bring them closer to Volkswagen’s 9.2 million mark.
The whole point seems to be forging a stronger global player that can stare down established juggernauts and also push back against those newer electric contenders arriving with plenty of swagger.
So far, neither Honda nor Nissan confirms anything flat-out. Both have stuck to vaguely positive comments about working together and promise to say more once the situation clarifies. This sudden surge in speculation follows earlier moves to share technology and components. It feels as if the two have been gently testing the waters for a while now. If so, why hold back?
Arifumi Yoshida, head of pan-Asia autos at Citigroup Global Markets Japan Inc, was quoted by Bloomberg as saying that the merger talks can be viewed “in anticipation of the full-scale transformation of the auto industry.”
If completed, this would be the biggest merger since Fiat Chrysler and PSA linked up to create Stellantis in 2021. Industry experts keep nudging automakers to combine forces to spread out their investments, especially as the world tilts toward EVs and new emissions standards. With Tesla and fast-rising Chinese brands breathing down their necks, old-school manufacturers need to stay agile, or risk turning stale.
Investors seem intrigued. Honda’s U.S.-traded stock inched up about 1% when this news broke. Nissan’s shares climbed more than 11%, which suggests investors out there like what they’re hearing. Still, the possible incorporation of Mitsubishi, where Nissan holds a 24% stake, raises questions. Will it bring a helpful boost or another layer of complexity? Are these companies truly compatible, or will the alliance just paper over old wounds?
Nissan’s longstanding ties with Renault have unraveled over time, and Honda’s connection with GM has faded. Each brand has its reasons to seek fresh alliances. Maybe together they can find the momentum they’ve lacked on their own. Yet skeptics might ask, will this trio actually learn from past tensions and hammer out a workable approach?
If they pull it off, Japan’s auto landscape could end up split into two towering camps. On one side, Toyota and its affiliates. On the other, Honda-Nissan. In this scenario, the new coalition would try to reposition itself as a formidable global force. Global consumers, investors, and the competition itself will be watching closely. With so much in flux, who wouldn’t want to see if these three can knit together a more resilient contender in a marketplace that demands nothing less?
Shares of Japanese carmakers spiked after reports of the possible merger between Honda and Nissan, fueling speculation about further consolidation within the industry.