a memorandum of understanding has been signed between Honda, Nissan and Mitsubishi. The three Japanese firms intend to merge, to face Chinese competition together. If this is confirmed, this new entity could become the third largest manufacturer in the world behind Toyota and Volkswagen.
The birth of a new automobile giant?
Japanese brands are finally going on the offensive. Lagging behind in the electric field, Honda, Nissan and Mitsubishi have just announced the signing of a memorandum of understanding to attempt to merge. The news was announced at a press conference held in Japan on December 23, 2024. Details of the merger are few, but everything seems to indicate that Honda will be at the head of this new alliance.
Unlike Nissan, which is seeing its sales collapse, the Tokyo manufacturer's activities are more solid. If the operation goes through, it would create the world's third largest car manufacturer in terms of sales based on current results. Behind Toyota and Volkswagen. This merger would allow the three Japanese brands to have real firepower to take on Chinese manufacturers and Tesla.
Nissan and Honda are trying to survive
Nissan needs to develop in the hybrid field. Honda has a particularly good command of the subject. For its part, the Yokohama firm could help its future ally in the field of 100% electric vehicles. Honda has fallen far behind in this sector. Let's not forget that the Nissan Leaf was still the first electric car marketed on a large scale. This liability can help.
Mitsubishi is too small to continue alone. This alliance seems to be its best opportunity. Sharing technologies and costs as well as pooling skills could allow the three brands to get by. It remains to be seen how this will actually play out. Implementing such a merger will not be easy.
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