Makoto Uchida, president and CEO of Nissan Motor, and Toshihiro Mibe, Honda Motor president and CEO, attend a joint press conference in Tokyo, Japan, on March 15, 2024TOKYO- Honda and Nissan expect big benefits from their potential merger to create the world's third-largest auto group but intense competition from China raises questions about whether they can make it work in time.
But the full effect of synergies is not likely to be felt until after 2030, Honda CEO Toshihiro Mibe told a joint press conference on Monday. The companies need to build up capabilities to take on Chinese rivals by then, he said, or face being "beaten".The biggest immediate hurdle for both may be their model line-up. Neither are particularly strong in EVs. Nissan, although an early pioneer with the Leaf, later stumbled.
A standardised vehicle platform would produce cost synergies, but that, too, would take time to develop.In China, the shift to electrified cars has seen consumer interest focus on software-driven features and the digital experience inside the car, areas where the Chinese makers excel. Turning around their sizable China operations will entail "significant execution risk", Dean Enjo, a senior analyst at Moody's Ratings, wrote in a note to clients.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Honda and Nissan to Explore Merger by 2026Honda and Nissan signed a memorandum of understanding to explore a potential merger, aiming to create a joint holding company by 2026. The goal is to become a world-class mobility company with over 30 trillion yen in sales revenue and 3 trillion yen in operating profit. The new company would be listed on the Tokyo Stock Exchange’s Prime Market in August 2026.
Source: IndependentSG - 🏆 9. / 63 Read more »
Honda and Nissan in Talks to Form Holding CompanyJapanese automakers Honda and Nissan are exploring the possibility of creating a joint holding company to streamline resources and collaborate more closely on technology in the face of intense competition from companies like Tesla and Chinese rivals.
Source: asiaonecom - 🏆 10. / 59 Read more »
Honda and Nissan in Merger TalksJapanese automakers Honda and Nissan are reportedly discussing the formation of a holding company, potentially leading to a full merger. This move aims to bolster collaboration on technology and navigate the challenges posed by electric vehicle competition and declining demand in key markets.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Honda, Nissan, and Mitsubishi in Merger TalksDiscussions between Honda, Nissan, and Mitsubishi Motors to explore potential collaborations and a possible merger, aiming to strengthen their technological capabilities and create a more competitive force against Toyota.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Japan's Honda and Nissan to begin merger talks, Nikkei reportsJapanese auto giants Honda Motor and Nissan Motor will start negotiations to merge as they face growing competition from bigger global electric vehicle makers, the Nikkei newspaper reported on Tuesday (Dec 17).
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »