Honda, Nissan and Mitsubishi confirm they are in merger talks
Share:
Deal would create world’s third-largest carmaker in terms of annual sales amid intense competition from China. Honda, Nissan and Mitsubishi have confirmed they are in talks over a possible three-way merger as the Japanese companies struggle with falling sales and intense competition from Chinese brands.
The companies confirmed on Monday that Honda and Nissan had agreed to “start consideration toward a business integration through the establishment of a joint holding company”, and that Mitsubishi will also decide on joining by the end of January. The merger would combine Japan’s second- and third-largest carmakers, and add the smaller Mitsubishi, in a defensive effort to join forces as the automotive industry goes through its biggest ever period of upheaval. It would create the world’s third-largest carmaker in terms of annual sales, behind only Japanese rival Toyota and Germany’s Volkswagen.
While Toyota has remained relatively financially resilient because of its early lead in hybrid vehicles, Japan’s other carmakers are struggling to come up with the money to invest in the switch away from polluting petrol and diesel to cleaner electric vehicles. Hybrids, which combine a petrol engine and a smaller battery, remain less expensive to produce for manufacturers.
At the same time, Chinese manufacturers such as BYD and SAIC have aggressively targeted electric cars as a way of grabbing a much bigger share of the global car market. China’s Foxconn, which makes iPhones under a contract with America’s Apple, had reportedly started early discussions about an approach for either Honda or Nissan, prompting accelerated merger talks.
Share:
More for You
