Honda and Nissan Mull Merger to Combat Industry Pressures

Japanese vehicle makers Honda and Nissan are discussing a possible merger, in a bid to share costs and help themselves compete in a fast-changing and increasingly competitive industry.

Thomas Stallkamp, an automotive consultant based in Michigan, was involved in the struggles of one of the biggest car company mergers: the 1998 merger of Chrysler and German company Daimler. Stallkamp spent years in senior roles at Chrysler and DaimlerChrysler. Chief among those problems is that sales have plummeted in China, the world’s largest vehicle market. Chinese buyers are moving much more quickly to electric and plug-in hybrid cars and trucks than most industry experts had expected.

A merger could help Honda and Nissan develop electric cars faster and at lower cost — in theory. But other companies have struggled to achieve such gains in practice, often because the priorities of companies working together often shift and diverge.Ford Motor and Volkswagen teamed up a few years ago to work on EVs and autonomous driving technology. But the companies shut down their self-driving car business and reaped few benefits from collaborating on EVs.

On the production side, Nissan has two vehicle assembly plants in the US and Honda has four. Each also has engine and transmission factories and engineering centres. They could in theory reap savings by combining their operations, closing some plants and locations and eliminating jobs. But that’s where the difficulties are likely to arise.

For more than two decades, Nissan was the junior partner in an alliance with Renault. The partnership saved Nissan from collapse and helped it become profitable, but neither company had the kind of long-term success that had been envisioned by Carlos Ghosn, who had led the alliance and served as CEO of both companies.Eventually, executives at Nissan chafed at being, in effect, controlled by Renault. In 2018, Ghosn was arrested and jailed in Japan on charges of financial wrongdoing.

Nederland Laatste Nieuws, Nederland Headlines

Similar News:Je kunt ook nieuwsberichten lezen die vergelijkbaar zijn met deze die we uit andere nieuwsbronnen hebben verzameld.

Honda and Nissan Mull Merger, Potentially Including MitsubishiHonda and Nissan are reportedly in talks to merge, with Mitsubishi potentially joining the alliance. This deal would solidify the Japanese auto industry and create a formidable competitor to Toyota.
Bron: brisbanetimes - 🏆 13. / 67 Lees verder »

Nissan and Honda announce merger plans to take on Toyota and VolkswagenA potential merger of Honda and Nissan, and its alliance partners Mitsubishi and Renault SA, could create a new manufacturer worth $79.9 billion, producing 8 million cars a year.
Bron: abcnews - 🏆 5. / 83 Lees verder »

Former Nissan CEO Carlos Ghosn claims Honda is being pressured into merger7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Bron: 7NewsSydney - 🏆 16. / 63 Lees verder »

Honda and Nissan to Explore Merger to Form Third-Largest AutomakerJapanese automakers Honda and Nissan have announced plans to merge, aiming to become the world's third-largest automaker. The move comes as the industry shifts towards electric vehicles and faces competition from newcomers. The merger talks also include Nissan's smaller alliance partner, Mitsubishi Motors. Discussions are ongoing, and a formal agreement is expected by June, with a potential listing on the Tokyo Stock Exchange by August 2026.
Bron: smh - 🏆 6. / 80 Lees verder »

Honda and Nissan Plan Merger to Form Third-Largest AutomakerHonda and Nissan have announced plans to merge, forming the world's third-largest automaker by sales. The companies aim to create a joint holding company to unify their operations, with Honda leading management. Mitsubishi Motors, a smaller Nissan alliance member, has also agreed to join the talks. The move comes as the auto industry faces significant changes in its transition away from fossil fuels, with Japanese automakers seeking to catch up with rivals like Tesla and BYD.
Bron: theage - 🏆 8. / 77 Lees verder »

Nissan’s mooted merger with Honda may be best answer to industry’s EV problemPotential deal sounds more like a credible plan for crisis-hit carmaker as its troubled alliance with Renault hits a dead end
Bron: GuardianAus - 🏆 1. / 98 Lees verder »