Mitsubishi Motors Potentially Not Joining Nissan and Honda Merger

KatadataOTO – Mitsubishi Motors will likely not join the merger of Nissan and Honda. The three-diamond logo manufacturer is reportedly still set to continue its business as usual.

This was stated by a source quoted by Reuters (24/01). This is despite Nissan being the largest shareholder in Mitsubishi Motors with a 24 percent stake. 

It is reported that the company is concerned about facing difficulties in influencing management decisions at the parent company. This situation arises because the size of its shareholding is relatively small.

As a result, they do not have the flexibility to develop the market as they wish. Therefore, Mitsubishi Motors will maintain its current structure and focus on expanding its market share in Southeast Asia.

Photo : Honda

It was previously reported that Nissan, Honda, and Mitsubishi had agreed to consider a merger in the future. There will be a holding company that oversees all three.

Honda is also reported to be leading the new management while maintaining the principles and brands of each company. Thanks to the collaboration, it is hoped that vehicle development will be cheaper and easier.

If the plan proceeds, the merger agreement will officially be made in June 2025, and the holding company will be listed on the Tokyo Stock Exchange in August 2026.

However, the plan could still be canceled.

“Currently, there are several things that need to be studied. Frankly, the possibility of the plan being canceled is not zero,” said Toshihiro Mibe, as reported by APNews (23/12).

Facing Obstacles

Photo : Honda

Recently, the merger has been threatened with cancellation because Honda asked Nissan to buy back its shares from Renault.
This condition is certainly not easy, as Renault still owns 35.7 percent of Nissan's shares, valued at USD 3.6 billion or equivalent to IDR 686.5 trillion.

Nissan's position is now difficult and threatened. They have even been forced to lay off 9,000 employees worldwide and reduce their production capacity to survive.

Not only that, they will also postpone the launch of several new models, which could potentially put them under more pressure. The merger is said to be one of the solutions to avoid bankruptcy.