The Honda-Nissan merger is one of the hottest and most rapidly developing stories in the auto industry right now. The two companies are stalwarts of the Japanese car market, and a possible merger could further strengthen their businesses.
The exact structure of the merger still isn’t clear, though. The big question is whether or not Mitsubishi would be part of this tie-up. The role of Renault – Nissan’s current partner – in this deal is also a mystery.
A Merger Of Equals Or A Takeover?
According to Japan’s Kyodo News, which cites unnamed insider sources, Honda is investigating the possibility of making Nissan a full subsidiary. This strategy change would significantly shift from the earlier plan of the automakers merging under a shared holding company.
If this happens, then Honda would have complete control over Nissan. The previous arrangement would have let both automakers maintain their independence while sharing components, technology, and economies of scale.
The insiders say that Honda isn’t convinced that Nisan has a successful business plan for succeeding in the future. In 2024, an unnamed person from Nissan admitted that the company had just 12 to 14 months to survive and was desperately searching for funding.
Nissan is unlikely to support becoming a Honda subsidiary. However, it’s unclear how much power Nissan has to fight back if the business is in such a dire position.
Honda CEO Toshihiro Mibe wants to see Nissan progress in its business changes as part of the merger agreement. This would show that the company is in a healthy enough financial position to become part of the new holding company. However, making Nissan a subsidiary might make this less of a concern because Honda would have increased control over what happens next.
Official News Coming Soon
Honda and Nissan plan to announce more details about the merger in mid-February 2025. The press conference might include details about the financial elements of the tie-up and more precise timing for when the two automakers might come together.
The matter of Mitsubishi’s role in the newly merged companies remains hazy. The latest reports suggest it might not be part of the holding company. Instead, Mitsubishi would try to partner with Honda and Nissan while remaining an independent company. Although, a final decision is still pending.
Renault owns a significant stake in Nissan and Mitsubishi as part of the automakers’ alliance. Previous reports indicate the French automaker wants to make the most of selling any shares it sells, meaning Honda likely wouldn’t buy them at much (if any) of a discount.
TopSpeed’s Take
The merger between Honda, Nissan, and possibly Mitsubishi is fascinating. If the tie-up happens, it could create a Japanese automaker capable of competing even better in the global market. There are still lots of questions to answer, though, which makes this developing story so exciting to cover.
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