Nissan The automotive world is experiencing a time of major merger and consolidation. With the evolution of costs, in particular because of electric cars, and the current marketing difficulties, manufacturers are seeking to regroup to continue to progress.
A few years ago, the creation of Stellantis, a holding company that owns Fiat, Peugeot, Citroën, Chrysler and Jeep, caused a lot of talk. The grouping of this group of manufacturers made Stellantis the leading seller of electric cars in the world.
Stellantis Japanese version
A project which seems to have given ideas to the other side of the planet, with the future creation of a Japanese holding company bringing together the Honda, Nissan and Mitsubishi brands. In a joint press release issued this week, the two major companies Nissan and Honda (Mitsubishi being a subsidiary of the Nissan group) have publicly revealed their intention to merge in the coming months.
If the two CEOs assured that the discussions were “only beginning”, they hope to find a preliminary agreement very quickly, at the end of January. The merger should be finalized next June, with the creation of a holding company that owns the two brands.
Renault has its cards to play
If this merger between two Japanese companies seems very far from our concerns, it is nevertheless France which would have the keys to this affair. Indeed, Renault still holds 15% of Nissan’s shares, which gives it a voice on the company’s board of directors.
However, it is the company’s board of directors which will have to validate, or not, the merger between Nissan and Honda in a few months. It is therefore the French company which will pull the strings of this affair, thousands of kilometers from Tokyo. It will be interesting to see what position will the diamond brand adopt facing a former ally and a direct competitor.
A merger for electric?
This was one of the burning questions surrounding this merger project, the future of the electric car. Honda is one of the most advanced brands in the world on this subject and it could share its experience and know-how with Nissan.
For its part, the brand has a very strong customer base in Europe and the United States, two regions where electric cars still sell very well. In their joint press release, Honda and Nissan assure that everything will be put in place to facilitate the development of the electric car. The R&D teams should be grouped within a single center, facilitating the work of both companies.
Nissan: a financial obligation
If in Europe Nissan is undoubtedly much better known than Honda, the Japanese brand is not in better health. Nissan is even going through a very difficult period, with accounts in the red for months. The company will also have to undergo a financial audit before the merger.
Honda, for its part, has stable finances, but a much smaller customer base in the West. By coming together, the two companies hope to benefit from the strengths of their new collaborator.
