In a bold move to counter declining sales and mounting competition from Chinese automakers, Honda, Nissan, and Mitsubishi are in discussions to form a three-way merger.
If finalized, the partnership will create the world’s third-largest carmaker, trailing only Toyota and Volkswagen in annual sales.
Honda and Nissan have already agreed to explore business integration through a joint holding company, with Mitsubishi expected to decide by January. This merger could revolutionize Japan's automotive sector, combining the resources of two of its largest automakers with Mitsubishi’s niche market expertise.
The automotive industry is undergoing a seismic shift as manufacturers transition from petrol and diesel engines to electric vehicles (EVs). While Toyota has maintained financial stability through its early adoption of hybrid technology, Honda, Nissan, and Mitsubishi are struggling to invest in the EV transition.
Chinese brands like BYD and SAIC have aggressively expanded their EV presence, pressuring traditional automakers to adapt.
Former Nissan CEO Carlos Ghosn, however, remains skeptical of the merger, citing duplication of efforts between Honda and Nissan. Speaking from Lebanon, Ghosn called the plan impractical, arguing that it might not yield the desired synergies.
Despite this, Honda CEO Toshihiro Mibe described the merger talks as a once-in-a-century opportunity, emphasizing the need for bold action to adapt to the evolving automotive landscape. Nissan CEO Makoto Uchida echoed this sentiment, highlighting the potential for significant synergies in innovation and manufacturing.
With the final decision expected early next year, this merger could mark a pivotal moment for the global car industry.
