Nissan could be reconsidering its involvement in merger negotiations with Honda, which could jeopardize a $60 billion alliance aimed at making them the third-largest car manufacturer in the world. This would leave Nissan on its own to drive its recovery.
Internal sources from the company, who preferred to remain anonymous, revealed that discussions between the two Japanese manufacturers have become more complex due to growing differences.
Why would the Nissan-Honda merger be delayed?
According to reports, the negotiations stalled after Honda proposed operating as a subsidiary, an idea that was not well received by Nissan, as it would completely alter the initial merger plans.
In light of these rumors, Honda’s stock, which has a market capitalization of approximately ¥7.92 trillion (around $51.9 billion), dropped more than 4% on the Tokyo Stock Exchange.
According to a Nissan spokesperson, its long-term alliance partner, Renault, will strongly defend the interests of the group and its shareholders. The spokesperson also emphasized that, as of now, no decision has been made regarding the possible end of talks with Honda.
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How would the cancellation of the Nissan-Honda merger affect Nissan?
Initially, Nissan and Honda had planned to define the direction of their integration by the end of January, but they later postponed the decision to mid-February.
The potential collapse of the merger raises doubts about Nissan’s future, as the company is undergoing a recovery process while seeking to reduce 9,000 jobs and cut 20% of its global capacity.
Without external support, the company faces the challenge of overcoming its latest crisis on its own, as Nissan has suffered more than some of its competitors during the transition to electric vehicles and has yet to fully recover from the crisis triggered by the arrest and dismissal of its former chairman, Carlos Ghosn, in 2018.
Which brands belong to Nissan?
Currently, Nissan markets over 60 car models under the following brands:
- Nissan
- Infiniti
- Mitsubishi
- Renault
- Alpine
- Datsun
- Lada
- Dacia
Which brands belong to Honda?
The Tokyo-based company manufactures, in addition to cars, aircraft, motorcycles, and robots under two brands:
- Acura
- Honda
Which is the largest car manufacturer in Japan?
Toyota is the largest car manufacturer in Japan. Honda comes in second, followed by Nissan in third place.
What are the largest car factories in the world?
- Volkswagen: The world’s largest car factory, spanning 6.5 million square meters. Models like the Golf, Touran, Tiguan, and the Seat Tarraco are assembled here.
- Toyota: Toyota’s plant in Kentucky, USA, is one of the largest globally, competing with Volkswagen’s Wolfsburg plant. It produces models such as the Camry and several versions of Lexus.
- Hyundai: Located in Ulsan, South Korea, this massive industrial complex covers 4.85 million square meters, where Hyundai and its affiliate brand, Kia, produce their models.
- Tesla: Tesla’s factory in China is one of the newest in the automotive sector. It spans over 1 million square meters and continues to expand. It currently produces the Tesla Model 3, Model Y, along with Superchargers and lithium-ion batteries.
- Ford: Ford’s industrial complex in Dearborn, Michigan, is one of the company’s most important production centers, with dimensions of 2.4 kilometers wide by 1.6 kilometers long.
