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Home»Automobile»Honda, Nissan postpone merger details to mid-Feb
Automobile

Honda, Nissan postpone merger details to mid-Feb

Jonathan LeeBy Jonathan LeeFebruary 4, 2025No Comments2 Mins Read
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Honda, Nissan postpone merger details to mid-Feb
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The proposed merger between Honda and Nissan isn’t going quite as easily as planned. Each firms announced on Friday that they’ll only release details of their plans – originally slated to be revealed at the tip of last month – in the midst of February.

Based on Kyodo News, the carmakers said they were still discussing the finer points of the merger, having confirmed in a press conference last month they’d agreed to start talks of merging under a holding company in 2026. Each brands would proceed to operate as usual inside that very same holding company, they added.

Honda CEO Toshihiro Mibe said then that his company hinged the merger on Nissan – in a financial crisis with only “12 or 14 months to survive,” said a senior official previously – making regular progress in restructuring its business. Sources near the matter told the Japanese publication that Honda has been urging Nissan to strengthen its efforts.

Honda, Nissan postpone merger details to mid-Feb

To its credit, Nissan did announce in November that it planned to chop 9,000 jobs worldwide and reduce global production capability by 20%, having seen its net profit fall by greater than 90% from April to September. The sources also said it’s going to offer early retirement programmes to employees at its three US plants and reduce its workforce in Thailand.

But Honda reportedly stays unsatisfied by the said progress and has called for more drastic measures to make sure a successful turnaround. Meanwhile, Nissan’s (and Renault’s) alliance partner Mitsubishi had also been in talks to hitch the merger but is not keen on doing so, as its relatively small size would make it difficult for it to affect management decisions of the joint holding company.

The Three Diamonds company now hopes to explore a collaboration with the merged firms while maintaining its status as a listed company, with a final decision also expected in mid-February or later. The news only adds to the bumpy road Honda and Nissan have already faced – the previous has pressured the latter to purchase back Renault’s stake in the corporate, but Nissan’s dwindling resources means it will not be within the position to accomplish that.

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This Article First Appeared At paultan.org

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