To Beat China, Honda and Nissan Plan a Merger
World
Honda and Nissan have begun negotiations for a merger, which could make them the third-largest automobile manufacturer in the world.
Additionally, Honda and Nissan have signed a memorandum of cooperation with another Japanese automaker, Mitsubishi Motors. This memorandum outlines the possibility of incorporating Mitsubishi into the group. Nissan is the main shareholder of Mitsubishi.
“The emergence of Chinese automakers and new players has drastically transformed the automotive industry. We need to strengthen our capabilities to compete with them, or we’ll be left behind,” said Honda CEO Toshihiro Mibe during a press conference in Tokyo.
According to representatives from Honda and Nissan, if the merger is finalized, the total sales of the holding company could reach 30 trillion yen ($191 billion USD), with profits exceeding 3 trillion yen ($19 billion USD). Following the news of a possible merger, Honda’s shares rose by 3.8%, Nissan’s by 1.6%, and Mitsubishi Motors’ by 5.3%.
“The emergence of Chinese automakers and new players has drastically transformed the automotive industry. We need to strengthen our capabilities to compete with them, or we’ll be left behind,” said Honda CEO Toshihiro Mibe during a press conference in Tokyo.
According to representatives from Honda and Nissan, if the merger is finalized, the total sales of the holding company could reach 30 trillion yen ($191 billion USD), with profits exceeding 3 trillion yen ($19 billion USD). Following the news of a possible merger, Honda’s shares rose by 3.8%, Nissan’s by 1.6%, and Mitsubishi Motors’ by 5.3%.
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