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Japan’s Nikai has reported that two of the
world’s largest automakers may be in merger
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talks.
Honda and Nissan represent the 2nd and 3rd
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largest Japanese automobile companies, behind
only Toyota in global sales volume.
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Still, Nissan has notably lost its footing in
the past year.
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Last month, the automaker reported a net
earnings decline of more than 90% for the first
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half.
In turn, Nissan cut its profit forecasts
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significantly and.
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Thousands of jobs.
Meanwhile, despite posting a disappointing
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second quarter, Honda increased its guidance in
a sign of strength for the full fiscal year.
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So could a Honda merger take some of the
pressure off of a fledgling Nissan?
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Perhaps, though there is still very little
detail available.
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Reuters reported that Honda and Nissan each
issued identical statements saying no merger
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had been announced, though they did suggest
they’d informed stakeholders of any updates
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relating to previously.
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collaboration goals in March of this year, the
two firms revealed that they’d be jointly
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developing electric vehicles and other modern
technologies.
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At the time, Honda president Toshihiro Mibe
said the companies share common values and
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could create synergies to help them compete
with rivals,
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all while maintaining their own products.
Edmund’s analyst Jessica Caldwell suggested to
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Reuters that partnerships and mergers like the
aforementioned might be the next stage of an
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automotive market.
Stressed by global competition and heavy
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pressures for investment in new technologies,
the thought that some of these smaller players
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can survive and thrive is getting more
challenging, she added that consolidation might
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be necessary not only to survive but also just
to afford the future.
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Reuters says any tie up would be the biggest in
the industry since the 2021 merger between Fiat
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Chrysler, and PSA to form Stalantti, a deal
that rang in at $52 billion.
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I’m Anna Wells, and this is manufacturing now.