A combination of Honda, Nissan and Mitsubishi
The companies plan to sign a memorandum of understanding soon, Nikkei reported. It is also planned transfer to the newly established Mitsubishi Motors holdingin which Nissan is one of the largest shareholders (24 percent share).
Newly created by the merger of Nissan, Honda and Mitsubishi will have sales of over 8 million cars per year. The holding would therefore automatically become one of the largest producers in the world, although it would decline Toyota (11.2 million cars sold in 2023) and Volkswagen (9.2 million cars).
Strategic cooperation between Honda and Nissan
Honda she already signaled earlier this year that together with Nissan are considering various possibilities for cooperation. Its representatives did not confirm the information about the current talks, but they did not deny it either. Both companies have already been established this year strategic cooperation in the field of sharing car parts and software.
The merger of Honda with Nissan would be the largest since the merger of Fiat Chrysler with the French PSA Group, which resulted in the creation of Stellantis in January 2021.
The merger would be a very good response to the expectations of market experts and consultants, according to whom mergers and acquisitions are the best way for automotive companies to reduce costs and increase their chances in competing with rapidly growing Chinese manufacturers and American Tesla.
Honda and Nissan capitalization
Honda market capitalization this is right now $39.06 billion – we read on CNBC. This is much less than over a decade ago – at the beginning of 2011 it was worth over $78 billion. Nissan is currently valued at $9.95 billion “greens”. At its peak, the company was worth over $54 billion, but it has been steadily losing money for over a decade.
For comparison – American Tesla currently has a capitalization of $1.54 trillion. That’s nearly 40 times more than Honda. This shows how much old automotive brands have lost in the eyes of investors, especially compared to rapidly growing innovative companies specializing in the production of electric cars.
