Honda car manufacturers, Japanese car giant, and Nissan, its rival in serious financial difficulties, formalized Thursday, February 13, the abandonment of their discussions for a merger, started in December with a view to uniting their forces in electric. If he had resulted, their project would have given birth to the third world manufacturer.
But after discussions, “the two groups concluded that, to favor the speed of decision -making and their execution in an increasingly volatile market environment […]it would be more appropriate to stop talks and terminate the memorandum of understanding, “they said in a joint statement.
The objective was to associate the forces of Honda and Nissan, respectively second and third Japanese manufacturers behind the world leader Toyota, and even to associate a third manufacturer, Mitsubishi, to better negotiate the expensive and strategic turn of the ‘electric. A niche dominated by the American Tesla and the Chinese manufacturers, and where the Japanese manufacturers, hitherto focused on hybrids (combining thermal and electric motorization), have taken a considerable delay.
Honda wanted to make Nissan a simple subsidiary
A wedding from Nissan and Honda would have made it possible to identify savings in ladders to finance both the research and the evolution of the industrial tool. The initial perspective was to bring together the two groups within a unique holding company. But Honda, in a position of strength and whose market capitalization is five times higher, finally asked to transform Nissan into a simple subsidiary: an unacceptable scenario for Nissan, anxious to preserve its autonomy.
“Various options have been envisaged concerning the structure of commercial integration. Honda proposed to modify the structure (projected), by passing from a joint joint company […] To a structure where Honda would be the parent company and Nissan the subsidiary through an exchange of shares, “detailed the common press release.
Tergible sales
This rapprochement was perceived as providential for Nissan, massively in debt and whose operating margin has melted. Under pressure, he announced in November to suppress 9,000 positions in his global workforce and prune in his capacities, to reduce costs and restart his sales. Honda had immediately insisted that it was not for him to rescue her partner, summoned to make her structural transformations beforehand.
The prospects remain sullen for the two groups: as most of the world automotive industry, they are faced with a crumbling of sales, the shortness of the market and the complicated transition in electricity. Doped by the boom in electricity, China exceeded Japan as the first exporting country of vehicles in 2023.
Renault “will continue to support Nissan”
Alarmed by their delay, Nissan and Honda had unveiled in March 2024 a “strategic partnership” in software and equipment for electric vehicles. Initiative joined in August by their compatriot Mitsubishi Motors. “In the future, Nissan and Honda will collaborate within the framework of a strategic partnership to face the era of electrified and intelligent vehicles, striving […] To maximize the value “and the strengths of the two groups, they assured Thursday in their joint press release.
French Renault, which holds some 35% of the capital of Japanese Nissan, commented the abandonment of the merger project on Thursday by declaring to AFP that it “will continue[it] To support Nissan in his current projects “.” As Nissan actionary, the terms of this transaction, including the fact that it does not include any control premium, are not acceptable, “said Renault.