The Strategist

Mitsubishi has no plans to join Honda-Nissan merger



01/24/2025 - 05:36



Mitsubishi Motors, a Japanese automotive company, reportedly has no intentions of joining the entity that could be formed from the merger between Honda Motors and Nissan Motors, according to Kyodo News Agency citing sources.



At the close of December last year, the leaders of Honda Motors and Nissan Motors declared the formal initiation of merger discussions, along with the commencement of exploring the involvement of Mitsubishi Motors, primarily owned by Nissan Motors. The negotiations are expected to be finished by the end of January 2025.

During a press conference, Honda CEO Toshihiro Mibe stated that if the matter is settled positively, a formal merger agreement will be finalized by June 2025. This agreement will lead to the formation of a shared company by August 2026, which will possess shares from both automotive firms, and the brands of the two car manufacturers, or three if Mitsubishi participates, will be maintained.

Honda will own over fifty percent of the board of directors as well as the authority to appoint the company’s leader.

Should the merger be completed, the resulting company will rank as the third largest globally, following Toyota (11.23 million cars by 2023) and Volkswagen (9.23 million cars), with an output of 7.35 million cars.

source: english.kyodonews.net