Honda and Nissan have been in merger talks with a goal of coming together by 2026. Despite some hiccups involving Mitsubishi and other challenges, the pair recently said they want to announce some details on the merger by mid-February, a slight delay from what was expected to be a late-January statement.
A Nissan spokesperson told Reuters, “The two companies planned to decide on the direction of the management integration by the end of January, but Integration Preparatory Committee discussions are ongoing.” Renault, part of the three-way auto alliance with Nissan and Mitsubishi, said it was ok “in principle” with the merger, but Mitsubishi is on the fence about joining the tie-up.
Nissan has had significant challenges with oversupply and falling sales, but Honda is firm in its stance that the merger is not a bailout. Last year, company CEO Toshihiro Mibe said that Nissan would need to make consistent strides toward restructuring before the merger could progress.
Part of Nissan’s recovery involves cutting production of popular models to help reduce dealer supply, and it will offer buyouts to thousands of employees. While the merger would help Nissan and put both companies in a more favorable competitive position, Honda’s comments suggest that there’s a chance it might not happen. Pressure from the Chinese auto industry is a strong motivator, however, and the opportunity to become the world’s third-largest automaker may be too strong to resist for either company.
[Images: Honda, Nissan]
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