Tuesday, January 25, 2022
News Officials in Japan Wanted Nissan, Honda Merger. Honda and Nissan Did Not

Officials in Japan Wanted Nissan, Honda Merger. Honda and Nissan Did Not

Officials wanted Honda, Nissan merger to keep companies ahead of competition

  • Nissan is already heavily allianced with Renault for modern tech and parts share

  • Honda working with GM for EV and AV development


A new report suggests that the Japanese government was trying to push a merger between Nissan and Honda, most likely to help both attain greater technology and cost-sharing, but the plan was foiled when both companies rejected the idea.

The attempt was first floated to the two automakers late last year, says The Financial Times, who cites three people familiar with the effort. The government feared that Japan’s auto manufacturing base was losing its advantages as self-driving and electric vehicles changed the playing field and introduced more competitors.

As more and more automakers merge and partner with others, most recently the announced merger of Fiat Chrysler and PSA, Honda’s independence has come under scrutiny. Though that automaker has worked with General Motors on self-driving and electric vehicle development over the past few years.

While the chaos surrounding COVID-19 buried the efforts, they were likely already dead. Neither Honda nor Nissan, which is part of a now-struggling alliance with Mitsubishi and Renault, were interested in the partnership.

The report says Honda officials pushed back against Nissan’s complex involvement with Renault while Nissan opposed it as they try and get that same alliance back on track. FT also said that while Honda and Nissan are similar in new car sales, Honda’s large profits from motorcycles, as well as being the world’s largest maker of engines (that includes powersports and lawn and garden).

Nissan has been an EV pioneer, while conservative Honda has stuck with hybrids, much like larger Toyota, and has invested heavily into hydrogen-powered vehicles.

 

Trending Now

Saleen Looking to Build an Electric Supercar

Saleen is on the cusp of launching new products. The next step is funding. The tuner filed with the Securities and Exchange Commission for...

Stellantis CEO Tavares Says Electrification is Politically Motivated

According to Tavares, politicians chose electrification and not the auto industry. Stellantis announced some of its electrification plans last September. Both Stellantis’ CEO Carlos...

Cadillac is Giving the Escalade A Great Big V

Performance V badge applied to the Escalade for the first time Caddy keeping quiet on the details, but expect big things Cadillac is bringing...

Ford 2022 Lineup: Models And Changes Overview

Ford Maverick, F-150 Lightning and E-Transit are all-new for 2022. Off-road-focused Timberline editions arrive for Explorer and refreshed Expedition, Bronco Raptor debuts. Last...

All-new 2023 Toyota Sequoia Premieres on January 25th

Toyota teased a new SUV earlier this week, but everyone figured out it was the new Sequoia. The exact reveal time is next...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.