Mitsubishi Motors is considering opting out of the proposed merger between Nissan and Honda, according to a source familiar with the matter. Instead, the Tokyo-based automaker is expected to prioritize strengthening its cooperation with the two larger firms.
The decision reflects Mitsubishi Motors’ concerns about potentially losing management autonomy under a holding company structure. While Mitsubishi is already a partner of Nissan and boasts a strong market presence in Southeast Asia, including Indonesia and the Philippines, doubts persist regarding the synergistic benefits of a merger with Honda and Nissan.
Industry observers highlight that the global automotive sector’s focus is shifting towards electric vehicles (EVs) and advanced software development, areas where all three companies face significant challenges.
“At this stage, we are considering various possibilities, and we have not decided on a specific direction,” Mitsubishi Motors said in a statement on Friday. President Takao Kato reinforced this position, stating to reporters, “Nothing has been decided.”
The proposed merger, announced in late 2023 by Honda and Nissan, aims to establish a holding company in 2026, creating the world’s third-largest automaker by volume. Combined sales from Honda, Nissan, and Mitsubishi Motors in 2023 exceeded 8 million vehicles, trailing Toyota Motor Corp.’s 11.23 million and Volkswagen AG’s 9.24 million.
If realized, the merger would enable the group to better compete with leading U.S. and Chinese EV manufacturers. However, internal concerns remain within Honda and Mitsubishi Motors regarding Nissan’s ongoing business turnaround. Honda has reportedly made Nissan’s recovery a key condition for the merger.
Nissan has struggled financially in recent years, reporting a 90 percent decline in net profit during the April-September 2023 period. The automaker announced plans to cut 9,000 jobs globally and reduce its production capacity by 20 percent to address the downturn.
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