Posted:
18.12.2024 10:06:43
Honda, Nissan discussed merger to stave off competition
Two of Japan’s car makers, Honda Motor and Nissan Motor, are in preliminary merger talks. The reasons are growing competition from Chinese manufacturers and lagging EV demand, TASS reports.
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Financial Times claimed, citing sources, that the two companies ‘are studying a way to combine that would help them better compete’. The merger, if it comes to pass, will result in an automotive giant with assets worth $52 billion, the third biggest car maker in the world behind Toyota and Volkswagen. That would help draw investment to better compete against Tesla and BYD. The latter, by the way, is the leading car maker in China that overtook Honda Motor and Nissan Motor in global sales in Q2, 2024, becoming the 7th largest in the world. BYD’s sales grew 40 percent compared to the same period of the year before.
According to Financial Times, the merger would have consequences for Mitsubishi Motors, which Nissan has a near 27 percent stake in, and which could become part of the enlarged company. The combined annual production output for the tree brands would be about 8 million vehicles.
Financial Times claimed, citing sources, that the two companies ‘are studying a way to combine that would help them better compete’. The merger, if it comes to pass, will result in an automotive giant with assets worth $52 billion, the third biggest car maker in the world behind Toyota and Volkswagen. That would help draw investment to better compete against Tesla and BYD. The latter, by the way, is the leading car maker in China that overtook Honda Motor and Nissan Motor in global sales in Q2, 2024, becoming the 7th largest in the world. BYD’s sales grew 40 percent compared to the same period of the year before.
According to Financial Times, the merger would have consequences for Mitsubishi Motors, which Nissan has a near 27 percent stake in, and which could become part of the enlarged company. The combined annual production output for the tree brands would be about 8 million vehicles.
