The managing director of Nissan Oceania has thrown his support behind a mooted merger between Nissan and Honda, describing the move as a smart business decision.
On the back of worsening financial struggles for Nissan, the rise of Chinese carmakers, and mounting cost pressures associated with electric vehicle (EV) development, the Japanese giants had indicated they may join forces from mid-2026.
Regional Nissan boss Andrew Humberstone sees a merger as a mutually-beneficial business partnership, despite external commentary likening the merger to a lifeline for Nissan.
“Respectfully, this is nothing unusual. Many, many manufacturers have merged, it’s not something new,” Mr Humberstone told CarExpert at the launch of the updated Qashqai, just days before a Nikkei Asia report indicated the merger mightn’t happen after all.
“We’ve been seeing consolidation within the automotive space for over 20 years, and I think we’ll continue to do so given the complexities of the global market and the macroeconomic environment.
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“You’re shrewd to do so, it would be irresponsible not to. And you have to look at a future strategy that asks ‘where are we in 5, 10, 20, 30 years time? And what are we doing now to guarantee our longevity, to ensure we don’t become extinct?’
“To me, that’s just good business practice, sitting there and saying, ‘hang on, we’re far ahead on this technology and you’re far ahead on that technology, let’s have a chat. Hang on, I’ve got surplus production in this country. Okay, we can produce for you and vice-versa’.
“It’s just good business. You can scaremonger with it, but frankly the framing is in the commercial acumen of the people that are driving the change. But many would interpret it differently.”
Honda and Nissan announced plans to merge in December, with a definitive agreement laying out the specifics of the deal, including share transfers, to be completed by June 2025.
A merger would make the new Japanese alliance the world’s third-largest carmaker based on 2023 sales volumes, behind Toyota (including Lexus, Daihatsu and Hino) and the Volkswagen Group.
Leading up to the merger agreement, a senior official close to Nissan told The Financial Times “we have 12 or 14 months to survive”.
The brand has already taken drastic measures to stop the bleeding, cutting global production capacity by 20 per cent and axing 9000 jobs to “stabilise and right-size” the business.
Once approved, a merger between Honda and Nissan would see the birth of a new holding company in the vein of Stellantis.
Expansion and improvement of future product portfolios are among the benefits that Mr Humberstone foresees should the two carmakers pool their resources.
“The winner in all of this ends up being the customer, because of better choice, a broader range of technology, and broader product portfolios,” said Mr Humberstone.
“It’s a corporate merger, but the synergies are there from a research and development point of view. They’re there from a technology point of view, they’re there from a platform point of view.
“It’s about efficiencies in production and supply, and it gives you a lot more flexibility and agility in terms of product portfolio, be that hybrid, e-Power or fully electric technology. That’s where the advantage comes from.”
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