Japanese carmaker in the mega fusion frenzy: Nissan and Honda combined!
Japanese carmaker in the mega fusion frenzy: Nissan and Honda combined!
In a groundbreaking decision, Honda and Nissan officially started negotiations on a possible merger on December 23, 2024 that could revolutionize the automotive industry. This merger would not only create the third largest automobile manufacturer in the world, but also help both corporations to bundle their strength against the growing competition from China. Together with the smaller automobile manufacturer Mitsubishi, which is already in an alliance with Nissan, the three companies could achieve annual sales of $ 191 billion and an operational profit of $ 19.2 billion, such as cnn reported.stock exchange reaction and strategic plans
The conjectures about the merger have already taken care of movement on the stock exchange: the shares of Honda rose by 3.8 percent, while Nissan and Mitsubishi recorded an increase of 1.6 percent and 5.3 percent. This shows that investors are optimistic about the possible synergies between the manufacturers. According to Hondas CEO Toshihiro Mibe, it is crucial to develop the necessary skills by 2030 in order to keep up with new actors in the industry, otherwise the deficit will be threatened. The merger talks should be completed by June 2025, followed by the foundation of a holding company until August 2026, as vienna.at reported.
The urgently needed merger follows the challenges that Nissan recently opposed, including a significant decline in profit by 94 percent compared to the previous year. In such a critical financial state, an association with Honda is of essential importance. The automotive industry faces enormous changes, especially with regard to the transition to electric vehicles and the stronger competition from innovative Chinese manufacturers. Nissan also plans to reduce its production capacities by 20 percent and to reduce around 9,000 jobs, which underlines the urgency of the negotiations. There is no question that the sales of electric vehicles, especially in China, have a decisive influence on the dynamics on the market, and a merger could help both corporations to compete better.
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| Ort | Vienna, Österreich |
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