Honda & Nissan Postpone Merger – More Details in Mid-Feb
Honda & Nissan Postpone Merger – More Details in Mid-Feb
The planned merger between Honda and Nissan is facing some challenges. On Friday, both companies announced that they would delay revealing details of their plans—originally set for the end of last month—until mid-February.
According to Kyodo News, the automakers are still finalizing the specifics. In a press conference last month, they confirmed their agreement to begin merger discussions under a holding company by 2026. However, they assured that both brands would continue to operate independently under this structure.
Honda CEO Toshihiro Mibe previously stated that the merger depends on Nissan’s ability to improve its financial situation. A senior official earlier warned that Nissan was struggling, with only “12 to 14 months to survive.” Sources told Kyodo News that Honda has been urging Nissan to accelerate its restructuring efforts.
In November, Nissan announced plans to cut 9,000 jobs worldwide and reduce its global production capacity by 20%, following a drop innet profit by over 90% from April to September. The company also revealed it would offer early retirement packages at its three U.S. plants and reduce its workforce in Thailand.
However, Honda remains dissatisfied with the progress made and is pushing for more drastic actions to ensure a successful recovery. Meanwhile, Mitsubishi, a partner in the Renault-Nissan alliance, had shown interest in joining the merger but is now hesitant. Its smaller size would limit its ability to influence decisions in the merged holding company.
Mitsubishi now aims to explore a collaboration with the merged companies while retaining its status as a listed entity. A final decision on this is expected in mid-February or later. This development adds to the challenges that Honda and Nissan have already faced, with Honda pushing Nissan to buy back Renault's stake in the company. However, Nissan's financial struggles may make it difficult for them to do so.
Japan