Nissan and Honda Postpone Announcement of Merger Agreement Details

KatadataOTO – Nissan and Honda have decided to postpone the detailed disclosure of their merger plans. The event was initially scheduled for January but has been pushed back to around mid-February 2025.

According to Reuters, the delay is because Honda wants to be more detailed in planning Nissan's development.
The decision shows a cautious approach to decision-making. Moreover, Toshihiro Mibe, CEO of Honda, had previously stated that the merger plan could be canceled.

He wants to see Nissan make progress in its business before the merger attempt is made. Especially since Nissan experienced a profit decline of up to 93 percent in 2024.

The Japanese manufacturer also stated that it has taken several steps to address this issue. Starting from laying off around 9,000 employees to reducing the production of vehicles at their three factories.

Photo: Honda

The merger plan between Honda and Nissan has indeed garnered significant attention as they would become the third-largest car manufacturer in the world. Additionally, both companies would achieve cost savings by sharing electric technology and strengthening their global competitiveness.

This would certainly be beneficial as Nissan has quite advanced electric vehicle technology. In fact, the reception of their products is quite high, especially in the United States.

Mitsubishi Motors Postpones Decision

Although partially owned by Nissan, Mitsubishi Motors is reportedly reluctant to join the merger. This is despite previous reports that they would participate, which would broaden the potential for vehicle development.

This is because the company with the three-diamond logo is concerned about having difficulty influencing management decisions in the parent company. This situation arises due to the relatively small size of its shareholding.

Photo: Mitsubishi

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

However, they emphasized that they will only make an official decision in the coming weeks. Thus, there is still time to make various considerations.