Honda and Nissan In Merger Talks

[aussiblue]

https://english.kyodonews.net/news/2...ks-source.html

Major Japanese automakers Honda Motor Co. and Nissan Motor Co. are arranging talks on a merger, a source familiar with the matter said Wednesday, amid fierce global competition in electric vehicles and other sectors.

Japan's second and third largest automakers are considering the possibility of establishing a holding company, the source said, in an apparent bid to form a global automobile alliance to challenge Chinese and U.S. EV makers, such as Tesla Inc.

Honda and Nissan agreed in March to commence a feasibility study on a strategic partnership in EV production and software technologies to cut costs and improve competitiveness, with Mitsubishi Motors Corp. joining the talks in August.

At a press conference in August, Honda President Toshihiro Mibe said the talks did not involve a capital tie-up, although he did not deny such a possibility in the future.

Honda last month cut its net profit outlook for the current business year through March to 950 billion yen ($6.2 billion), which would represent a 14.2 percent decline from the previous year, due to weaker-than-expected auto sales in China.

Also in November, Nissan unveiled a plan to cut 9,000 jobs and reduce global output capacity by 20 percent, saying its business in the United States and China continued to struggle.

[Citroënbender]

Remarkable. I’d have thought this was something the Japanese consider a huge loss of face.

[aussiblue]

So will it be called "Hondassan" or "Nissda"?

[blueoval]

Originally Posted by aussiblue

So will it be called "Hondassan" or "Nissda"?

Hondasan sounds more Japanese.

[aussiblue]

Remarkable. I’d have thought this was something the Japanese consider a huge loss of face.

But perhaps less so, given they are both Japanese, than some of the prior mergers or partial takeovers albeit they didn't last.

Mitsubishi and Chrysler
Mazda and Ford
Nissan and Renault
GMC and Subaru

Of course there was also the Subaru-Nissan tie up through Fuji Heavy Industries and why Subarus of the era had the same rear axle assembly as the Datsun 180B. Toyota which also owns Daihatsu, bought out some of GMC's shareholding of Subaru in 1999 and still also owns a large share (21%) of Subaru too.

[aussiblue]

There also rumours of Mitsubishi joining with Honda and Nissan per https://japantoday.com/category/busi...r-talks-report and https://www.news.com.au/technology/m...a9869fafeb7f6c etc

Japanese auto giants Honda Motor and Nissan Motor will enter talks on a merger aimed at helping them compete against Tesla and other electric vehicle makers, newspaper Nikkei reported early Wednesday.

The two firms are looking to operate under a single holding company and will soon sign a memorandum of understanding for the new entity, according to the Tokyo-based Nikkei.

It reported that Honda and Nissan will consider bringing in Mitsubishi Motors, of which Nissan is the top shareholder, under the holding company to create one of the world's largest auto groups.

Honda and Nissan issued almost identical statements in response, saying the details in the report had not been announced by either firm, and that they are "exploring various possibilities for future collaboration, leveraging each other's strengths," as previously announced.

[Syndrome]

Not the first time this has occurred. Toyota has been owned Daihatsu since 2016.

[Sprintey]

Hondassitsubishsan

[DFB FGXR6]

Nissan - The town bike of car companies.

Is there a car company that Nissan hasn't hooked up with for a quickie?

[Citroënbender]

Tesla?

[Fordman1]

Originally Posted by DFB FGXR6

Nissan - The town bike of car companies.

Is there a car company that Nissan hasn't hooked up with for a quickie?

I’m going with Mitsubishi, but then the Mitsubishi A6M Zero, was rubbish compared to the the Grumman F6F Hellcat.

[danzvtil]

I’m hoping they come up with a stupid computer generated name like Stellantis.

[Franco Cozzo]

Perfect for each other, both brands who decided to give up on their heritage and performance car past, and decide to attempt to emulate Toyota and their white goods operations unsuccessfully

[smoo]

Originally Posted by Franco Cozzo

Perfect for each other, both brands who decided to give up on their heritage and performance car past, and decide to attempt to emulate Toyota and their white goods operations unsuccessfully

Evident by the types who get behind the wheels of these things.
Dead set with the exception of Navara, Patrol and the sports cars, Nissan attract the worse drivers. The most brain dead incompetent drivers on the road are behind the wheel of Nissan X Trails and Tiidas, but this can also extend to Quashi, Note, Micra, Leaf, Murano, Pulsar. Or what ever the modern equivalent of a Pulsar is these days.

All of Hondas modern range aren’t far off, driven by those who have one foot in the grave and completely oblivious to anything else that’s going on around them.

Have had a couple of X Trail rental cars. The previous shape that ran to about 2022. I have never experienced such a sub par vehicle in all regards. I could not find one thing positive about it. So it is no surprise they attract the type of driver who need a days mental recovery after tying their shoelaces.

[blueoval]

Originally Posted by smoo

Evident by the types who get behind the wheels of these things.
Dead set with the exception of Navara, Patrol and the sports cars, Nissan attract the worse drivers. The most brain dead incompetent drivers on the road are behind the wheel of Nissan X Trails and Tiidas, but this can also extend to Quashi, Note, Micra, Leaf, Murano, Pulsar. Or what ever the modern equivalent of a Pulsar is these days.

All of Hondas modern range aren’t far off, driven by those who have one foot in the grave and completely oblivious to anything else that’s going on around them.

Have had a couple of X Trail rental cars. The previous shape that ran to about 2022. I have never experienced such a sub par vehicle in all regards. I could not find one thing positive about it. So it is no surprise they attract the type of driver who need a days mental recovery after tying their shoelaces.

I think you nailed the perfect description of some of these Nissan owners.

However, my mate just bought a 2024 Nissan Patrol Warrior and that thing is a bit of a beast. 120K kind of beast mind you but a beast nonetheless. Ol mate works for the TAFE education department, no kids, small mortgage and has a 70K to tow so I get it. Not all Nissan's are you average white goods variety but I rate the Patrol.

[Ford17]

Originally Posted by aussiblue

So will it be called "Hondassan" or "Nissda"?

So many interesting variations:

Hotsun
Datonda
Nisda
Honsan
Honis
Nisho

If this becomes a thing, I'll need to re-brand my whippersnipper.

[uranium_death]

Originally Posted by smoo

Dead set with the exception of Navara, Patrol and the sports cars, Nissan attract the worse drivers. The most brain dead incompetent drivers on the road are behind the wheel of Nissan X Trails and Tiidas, but this can also extend to Quashi, Note, Micra, Leaf, Murano, Pulsar. Or what ever the modern equivalent of a Pulsar is these days.

BS. I've seen idiots thinking they own the road with a, "mine's bigger" mentality as they cut across traffic in their Navara/Patrol. It's not unique, as every marque has their idiots. Many yahoos in Rangers, Hiluxes etc.
You get the complete fudgewits who stick big mudtyres on their 4WD and tear up a campsite, 'for fun.'

I personally detest maroon Mazdas. I don't know why, but when you get behind the wheel of a maroon Mazda, you seemingly forget how to drive and co-exist with everybody else on the road.

[blueoval]

[roKWiz]

Originally Posted by Syndrome

Not the first time this has occurred. Toyota has been owned Daihatsu since 2016.

2016 ?

1983 V48 Daihatsu Delta AKA Toyota Dyna. Had both Toyota and Daihatsu compliance plates.

[aussiblue]

Sounds like the merger is off now:

https://english.kyodonews.net/news/2...da-source.html

Nissan set to scrap merger talks with Honda, rejects becoming unit

KYODO NEWS KYODO NEWS - 11 hours ago - 00:11 | All, Japan

Nissan Motor Co. is set to end merger talks with Honda Motor Co., rejecting Honda's recent proposal to make Nissan a subsidiary a little more than a month after their talks began on a deal that could have created the world's No. 3 auto group, a source familiar with the matter said Wednesday.

The two automakers said in December they had agreed to begin talks on merging under a holding company in 2026 while keeping their respective brands, aiming to reduce costs and share the growing financial burden of developing electric vehicles and software to compete with global rivals like Tesla Inc. and China's BYD Co.
Nissan Motor Co. President Makoto Uchida (L) and Honda Motor Co. President Toshihiro Mibe attend a joint press conference with Mitsubishi Motors Corp. in Tokyo on Dec. 23, 2024. (Kyodo)

However, Honda, which is bigger in sales volume and market capitalization, recently sounded out struggling Nissan about becoming its subsidiary, which has sparked vehement opposition within Nissan, according to sources familiar with the matter.

The merger talks came amid Nissan's restructuring, with Honda seeking control over the company out of concern that Nissan's failure to turn around could impact its own future, the sources said.

Nissan fears that becoming Honda's subsidiary would severely undermine its autonomy, the sources said. At a December press conference, Nissan CEO Makoto Uchida stressed that neither company would have the upper hand in the merger, emphasizing they would be on equal footing.

Nissan's restructuring plans have failed to convince Honda that the struggling carmaker is on track for a successful turnaround, a key premise both companies had agreed upon for the planned merger, according to the sources.

Analysts say Taiwanese electronics giant Foxconn, formally known as Hon Hai Precision Industry Co., could intensify its efforts to acquire a stake in Nissan, given its recent entry into the EV market and past talks with Renault SA to purchase some of the French automaker's shares in Nissan.

Renault, Nissan's longtime alliance partner, agreed in 2023 to reduce its stake in the Japanese automaker as part of a capital restructuring. As of October, Renault held a 17.05 percent stake in Nissan, with an additional 18.66 percent held through a trust company.

Suffering a more than 90 percent drop in net profit in the April-September period, Nissan said in November it would cut 9,000 jobs worldwide and reduce its global production capacity by 20 percent, though it fell short of providing details of the plans.

Nissan recently came up with offering early retirement programs to employees at its three U.S. plants and reducing its workforce in Thailand as part of the reform plans.

However, Honda has demanded more thorough overhaul measures, saying further streamlining is necessary to proceed with the planned merger, according to the sources.

Against such a background, the two automakers said Friday they would postpone the announcement of their merger details to mid-February from the end of January.

"Honda and our company are in the stage of advancing various discussions," Nissan said in a release issued after a report that it would call off talks with Honda. "We plan to establish a direction and make an announcement around mid-February."

The two automakers are set to release their earnings results for the April-December period next week.

[uranium_death]

Honda brings a lot more to the table than Nissan.
Personally, the deal being off hurts Nissan more.

Even if Honda quit producing passenger cars, they make motorcycles, boat engines, power tools etc.
I consider this a win for Honda. Nissan don't do anything all that well.

[aussiblue]

Definitely off now: https://www.japantimes.co.jp/busines...an-merger-off/

Honda and Nissan cancel megamerger after weeks of negotiations

The megamerger between Honda and Nissan is now officially off following weeks of talks, the two automakers confirmed on Thursday.

“It’s very unfortunate that we could not find the common ground to take a step toward the merger,” said Honda President and CEO Toshihiro Mibe in a news conference.

The automakers explored the deal, which would have created the world’s No. 3 vehicle producer, as a way to reverse their declining fortunes.

Nissan and Honda still intend to work together in areas including software and electric vehicle-related technologies.

Negotiations apparently hit a snag after Honda made a proposal for Nissan to become its wholly owned subsidiary. Nissan rejected the proposal.

The original plan was to establish a joint holding company that would fully own both Honda and Nissan. Honda was expected to pick a leader and a majority of the board members for the joint holding company.

But Mibe indicated that it would be best that Honda has more control to make speedy decisions under "one-governance" structure, so it proposed to make Nissan its subsidiary.

“We confirmed that the merger of the two companies had great potential to bring significant effects in various areas, ranging from platforms, purchasing, research and development and back-office operations,” Mibe said.

"At the same time, we also came to realize that it was necessary to swiftly and decisively implement painful decisions to achieve this."

Nissan thought the best form of the merger was to go with the original plan to establish the joint holding company, Nissan CEO Makoto Uchida said.

“Under the current situation, it is difficult to keep up with competition just by Nissan itself, so we had a serious discussion about the proposal by Honda," Uchida said in a separate news conference on Thursday

“We were unable to have confidence in how much Nissan’s independence will be ensured and whether our potential will be fully brought out if Nissan becomes Honda’s wholly owned subsidiary."

“Both companies concluded that, to prioritize speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU,” the companies said in the statement in reference to their earlier memorandum of understanding.

Given that Nissan’s market capitalization is just about one-fifth of Honda’s, the merger was widely seen as a move by Honda to save Nissan, which has been struggling.

In the first half of this fiscal year, Nissan’s net profit fell more than 90% mainly due to sluggish sales in the United States and China. Following the disappointing earnings report, the company announced it would cut 9,000 jobs globally.

Mitsubishi Motors, more than a third of which is owned by Nissan, previously said that it wanted to wait and see how the merger talks went before deciding whether to join.

When the three automakers held a news conference in December to announce the possibility of a merger, they said they were aiming to finalize a deal by June and establish a new holding company by the summer of 2026.

If Honda, Nissan and Mitsubishi had gone through with the merger plan, it would have left Japan with just two auto-manufacturing groups. Toyota — the world's largest automaker — counts Daihatsu Motor and Hino Motors as subsidiaries and also has capital ties with Isuzu Motors, Suzuki Motor, Mazda and Subaru.

A major question now is how Honda and Nissan will boost their competitive edge over other traditional and emerging rivals amid rapidly changing auto-tech trends.

Some analysts have said that it will be tough for Honda and Nissan to survive on their own, arguing that Nissan should not have let its pride get in the way of the proposal by Honda to become its subsidiary.

At the same time, some have expressed doubts about whether the two companies would have been able to smoothly merge anyway as their corporate cultures are quite different.

Reports indicate that Taiwan’s Hon Hai Precision Industry has expressed interest in making an investment in Nissan.

In 2019, Hon Hai, which manufactures iPhones and is better known by its Foxconn trade name, said it was making a foray into the EV market.

In 2023, the company recruited Jun Seki, a former Nissan executive, to head its EV business. Media reports have said that Seki is leading the efforts to establish ties with Nissan.

Competition in the auto industry is intensifying with nontraditional players, such as Tesla and BYD, expanding into the business in response to the rise of new technologies, including connected automobiles and autonomous vehicles, as well as to the ongoing process of electrification.

And Nissan's future looks grim: https://english.kyodonews.net/news/2...w-partner.html

FOCUS:After scrapping Honda merger, Nissan may struggle to find new partner

KYODO NEWS By Yuki Yamaguchi, KYODO NEWS - 1 hour ago - 09:40 | All, Japan

Nissan Motor Co. is expected to struggle to find a new partner after the breakdown of its planned merger with Honda Motor Co. indicated a lack of urgency by the ailing carmaker about restoring its battered operations.

Some foreign companies, particularly newcomers in the auto industry, may have been considering Nissan as a possible partner but could lose interest after seeing Nissan stick to its management independence, analysts say.

Honda is also expected to face a tough challenge for survival after the collapse of the deal, which would have created the world's third-largest auto group. But it is more serious for Nissan, given the scant progress it has made in its efforts to restructure.
Combined file photo shows the headquarters of Honda Motor Co. (L) in Tokyo and Nissan Motor Co. in Yokohama, near Tokyo. Nissan is set to end merger talks with Honda, rejecting Honda's recent proposal to make it a subsidiary, a source familiar with the matter said Feb. 5, 2025. (Kyodo) ==Kyodo

"I wonder if a sense of crisis was really shared by Nissan's management team," said Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Laboratory Co. "Their management decision is rather naive."

Behind the failure of the negotiations was Nissan's rejection of a proposal for it to operate under the Honda group, the two companies said Thursday. Under the initial plan, they sought to merge under a holding company.

Honda CEO Toshihiro Mibe said at a press conference Thursday that prolonged talks between the two carmakers would have delayed decisions on merger details and his company had sought to speed things along by making Nissan its subsidiary.

"We thought a stock swap (to make Nissan Honda's unit) was the only way for a successful merger," Mibe said.

When the two carmakers said at a press conference in December that they would begin talks on a merger, Nissan chief executive Makoto Uchida said they would be on equal footing.

But given Honda, Japan's second-largest carmaker by volume, has roughly five times the market capitalization of Nissan, Japan's third-largest, the deal was seen effectively as a bailout of struggling Nissan, analysts say.

"Considering Nissan's low profitability and lower market capitalization, an equal merger was a tall order in the first place," Jin Tang, senior principal researcher at Mizuho Bank, said.

Analysts say Nissan cannot survive by itself without finding a new partner, with Taiwanese electronics giant Foxconn, formally known as Hon Hai Precision Industry Co., emerging as a candidate.

Foxconn has approached Renault SA, which owns Nissan shares as a long-time partner but plans to reduce its stake in the Japanese carmaker, the Taiwanese company's chairman Young Liu told reporters in Taiwan on Wednesday.

Foxconn is looking at cooperation with Nissan, not an acquisition, the chairman said.

Nissan began talks with Honda out of fear that the Taiwanese company may be planning to acquire it, according to the sources.

"We will be aggressive in seeking a new partnership to maximize our corporate value," Nissan's Uchida said at a separate press conference on Thursday after unveiling the decision to abandon the merger plan.

Among other companies, Vietnam's Vingroup, which recently entered the auto market, and some Chinese automakers may be interested in Nissan, analysts say.

As vehicles become more electrified and software-driven, a growing number of firms have entered the auto market such as Sony Group Corp. and Chinese smartphone maker Xiaomi.

Nissan plans to cut 9,000 jobs and reduce its global production capacity by 20 percent. But Honda wanted more drastic restructuring steps to ensure Nissan's swift turnaround.

Analysts say Nissan's management team led by CEO Uchida was too slow in launching measures to address its faltering sales in China and the United States, the world's two biggest auto markets.

After the ouster of Carlos Ghosn, a charismatic former Nissan CEO, the carmaker has become more bureaucratic, a source familiar with the company's management said.

"If Nissan cannot put aside its pride and break its back for restructuring, it cannot open a path for its future," Mizuho's Tang said.

https://japantoday.com/category/busi...nda-and-nissan

and

What's next for Honda and Nissan?
Today 06:33 am JST 9 Comments
By Kyoko HASEGAWA
TOKYO

Honda and Nissan on Thursday announced the scrapping of merger talks that would have created the world's third-biggest auto company by unit sales behind Toyota and Volkswagen.

Here are some key points about why the Japanese companies explored a tie-up, the reasons for their failure, and where this leaves them in a difficult global auto industry.

What is their history?

Honda was founded in 1948 as a small factory making motorcycles and is now the world's biggest producer of the two-wheelers. It also makes 3.7 million four-wheel vehicles annually.

More than 40 percent of these were sold in North America last year, roughly 20 percent in China, 18 percent in Japan and three percent in Europe.

Nissan, founded in 1933, produced 3.1 million cars last year. North America accounts for 38 percent of its global sales, China 20 percent, Japan 14 percent and Europe 10 percent.

French automaker Renault took a 36.8 percent stake in the then loss-making firm in 1999 and Mitsubishi Motors joined the alliance 17 years later, with Nissan taking a 34-percent stake in its struggling Japanese rival.

But tensions emerged, stoked by the French state increasing its stake in Renault in 2015, followed by the 2018 arrest of Nissan boss Carlos Ghosn in Japan on suspicion of financial misconduct and his subsequent flight from the country.

In 2023, Renault sold part of its stake in Nissan as part of an alliance overhaul that saw them retain 15 percent cross-holdings.

Why did they try to merge?

Nissan has been struggling, last year reporting a 93-percent plunge in first-half net profit and axeing 9,000 jobs in November. It is also saddled with billions of dollars of debt.

For both companies, achieving economies of scale would have served to "enhance R&D capabilities, and better compete" in the areas of "advanced technologies including electrification and software-defined vehicles", said Tatsuo Yoshida, senior auto analyst at Bloomberg Intelligence.

Japanese carmakers have long lagged in the electric vehicle sector, especially against Chinese firms, with the country's leading EV-maker BYD last year selling more vehicles globally than Honda and Nissan.

The pair had already agreed on talks over partnership in electrification technologies and software development, and were later joined by Mitsubishi Motors.

Why did merger talks fail?

When the merger talks were announced in December the plan was that the two automakers along with Mitsubishi Motors would integrate their businesses under a new holding company.

But local media reports have said Honda, frustrated by its rival's slow decision-making on restructuring, wanted to make it a subsidiary, which Nissan's leadership found unacceptable.

"Nissan appears to be stressing its independence and freedom of (decision-making on) its strategy," which "for Honda's eyes may not maximise benefit of economy of scale," Mizuho Securities analyst Yoshitaka Ishiyama said.

What happens next?

In the long term at least, both firms will need to seek alternative partners as they look to get a leg-up in the technology race, analysts say.

"For Honda, there remains a concern about how to beef up its four-wheel vehicle business," said Seiji Sugiura, auto analyst at Tokai Tokyo Intelligence Laboratory.

"The fact that Honda executives had wanted to merge with Nissan means that they needed a close collaboration in R&D at a deeper level than an alliance, (which) involves sharing confidential company information," he added.

Nissan's position is worse, as it "faces significant challenges, including financial instability and the need to strengthen its position in the advanced technology battlefield", said Bloomberg's Yoshida.

Sugiura added that tech firm Foxconn "remains to be an option for Nissan".

Recent reports have said the Taiwanese giant, also known as Hon Hai, had been in talks with Renault over buying the French automaker's stake in the Japanese firm.

However, Sugiura added that a Foxconn-Honda tie-up was also possible "as it has technologies Honda wants".

And he added: "If Honda really wants Nissan's technology, it can launch a hostile takeover bid of Nissan."

And for Mitsubishi https://www3.nhk.or.jp/nhkworld/en/news/20250213_01/

A third Japanese carmaker, Mitsubishi Motors, has responded to the developments. Its biggest shareholder is Nissan.

Mitsubishi says it will cancel a memorandum of understanding on a possible alliance with Honda and Nissan. But it may still collaborate with them on software development.

[danzvtil]

Nissan Australia PR spin: We’re here to stay ;)
How very Holden of them.