BungleBob
2024-12-18 22:09:17 UTC
Likely yet another case of bad reporting / attention-seeking headlines.
At best it is probably just a collaboration project for an EV platorm
(similar to the partnership for the Toyota 86 / Subaru BRZ twins),
rather than an actual full company merger.
Honda And Nissan Hold Merger Talks
----------------------------------
Japanese automaker Nissan has been having a pretty rough time
in 2024, with sales floundering and its aging lineup looking
increasingly outdated compared with the competition. Honda
also hasn't had a phenomenal time of it, with the automaker
slow on the uptake of EVs and backtracking on a deal to
collaborate with General Motors on next-generation models.
These two automotive icons are now reportedly considering a
merger that would create a new automotive giant to turn around
their fortunes, reports Bloomberg. Talks, which could even
extend to Mitsubishi as well, have kicked off between the
Japanese brands with the automakers hoping that by pooling
their resources they'll be better prepared to tackle the
competition from rivals Toyota and the booming Chinese auto
industry:
Discussions are at an early stage and may not lead to
an agreement, the people said.
"Both players stand to gain from this merger," Vivek
Vaidya, senior vice president of mobility at Frost &
Sullivan, said. "The combined entity will be a
complete automaker."
A deal would effectively consolidate the Japanese auto
industry into two main camps: One controlled by Honda,
Nissan and Mitsubishi and another consisting of Toyota
group companies. It would also provide them with more
resources to compete with larger peers globally after
downsizing long-held partnerships with other carmakers.
Nissan has loosened ties with France's Renault SA and
Honda has backed away from General Motors Co.
If Honda, Nissan and Mitsubishi were to merge, it would create
an automotive giant with a market value of $57 billion, reports
Bloomberg. In comparison, Toyota is valued at $276bn and Tesla
is valued at more than a trillion dollars.
The makeup of any potential merger remains to be seen, with
Honda and Nissan set to decide whether it could be a full
merger similar to the joining of Fiat-Chrysler and PSA to
create Stellantis, or if it could be something softer, as
Bloomberg added:
Honda is considering several options including a
merger, capital tie-up or the establishment of a
holding company, Executive Vice President Shinji
Aoyama said on Wednesday following reports
overnight of talks between the carmakers. Aoyama
declined to elaborate on when a potential
decision will be made.
The companies could make an announcement on
Dec. 23, TBS reported. Stock in Honda fell as
much as 3.4%.
Would you buy a Nissan Honda car in the future, or would you be
more inclined to shop at your local Honda Nissan? Whichever way
around the names are above the door, this is sure to be a big
shakeup in Japan's auto industry that could just save these two
companies.
<https://jalopnik.com/honda-and-nissan-in-merger-talks-to-compete-with-tesla-1851723699>
At best it is probably just a collaboration project for an EV platorm
(similar to the partnership for the Toyota 86 / Subaru BRZ twins),
rather than an actual full company merger.
Honda And Nissan Hold Merger Talks
----------------------------------
Japanese automaker Nissan has been having a pretty rough time
in 2024, with sales floundering and its aging lineup looking
increasingly outdated compared with the competition. Honda
also hasn't had a phenomenal time of it, with the automaker
slow on the uptake of EVs and backtracking on a deal to
collaborate with General Motors on next-generation models.
These two automotive icons are now reportedly considering a
merger that would create a new automotive giant to turn around
their fortunes, reports Bloomberg. Talks, which could even
extend to Mitsubishi as well, have kicked off between the
Japanese brands with the automakers hoping that by pooling
their resources they'll be better prepared to tackle the
competition from rivals Toyota and the booming Chinese auto
industry:
Discussions are at an early stage and may not lead to
an agreement, the people said.
"Both players stand to gain from this merger," Vivek
Vaidya, senior vice president of mobility at Frost &
Sullivan, said. "The combined entity will be a
complete automaker."
A deal would effectively consolidate the Japanese auto
industry into two main camps: One controlled by Honda,
Nissan and Mitsubishi and another consisting of Toyota
group companies. It would also provide them with more
resources to compete with larger peers globally after
downsizing long-held partnerships with other carmakers.
Nissan has loosened ties with France's Renault SA and
Honda has backed away from General Motors Co.
If Honda, Nissan and Mitsubishi were to merge, it would create
an automotive giant with a market value of $57 billion, reports
Bloomberg. In comparison, Toyota is valued at $276bn and Tesla
is valued at more than a trillion dollars.
The makeup of any potential merger remains to be seen, with
Honda and Nissan set to decide whether it could be a full
merger similar to the joining of Fiat-Chrysler and PSA to
create Stellantis, or if it could be something softer, as
Bloomberg added:
Honda is considering several options including a
merger, capital tie-up or the establishment of a
holding company, Executive Vice President Shinji
Aoyama said on Wednesday following reports
overnight of talks between the carmakers. Aoyama
declined to elaborate on when a potential
decision will be made.
The companies could make an announcement on
Dec. 23, TBS reported. Stock in Honda fell as
much as 3.4%.
Would you buy a Nissan Honda car in the future, or would you be
more inclined to shop at your local Honda Nissan? Whichever way
around the names are above the door, this is sure to be a big
shakeup in Japan's auto industry that could just save these two
companies.
<https://jalopnik.com/honda-and-nissan-in-merger-talks-to-compete-with-tesla-1851723699>