A potential global merger with Honda doesn’t spell trouble for Nissan in Australia, according to the Japanese brand’s Oceania managing director, Andrew Humberstone.
Nissan was on the verge of financial collapse before a preliminary deal was struck between the manufacturer and rival Honda to join forces.
A definitive agreement between the two powerhouse Japanese carmakers is scheduled to be completed by June 2025, before a planned merger in mid-2026. The industrial alliance could make Honda-Nissan joint venture the world’s third largest car manufacturer behind Toyota and the Volkswagen Group.
Nissan’s struggles on a broader scale aren’t reflected in Australia, where the brand continues to perform strongly – it delivered 45,284 vehicles here in 2024, when Honda managed just 14,092 deliveries.
Mr Humberstone expects that to continue in the event of a merger with Honda, committing to securing Nissan’s future in Australia.
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Nissan Navara Pro-4X Warrior
“We’re committed to stay and I think we’ve got all of the right levers in a very volatile market to deliver that,” he told CarExpert.
“We’ve got new Patrol, new Navara, new Leaf, new Ariya, new Qashqai, and the 10-year warranty. It just doesn’t stop. We’re really focused and we’ve got loads of things to be excited about.
“This is not an exit strategy. I’m quite optimistic,” he said.
Details of the developing merger agreement remain undecided, but Honda is expected to capitalise on its stronger financial position during negotiations. Honda would nominate a majority of the combined automaker’s board, and the top executive positions would be occupied by Honda nominees.
If the merger goes ahead, the two companies will be replaced by a single holding company on the Tokyo Stock Exchange, pitting the pair against Toyota in the Japanese automotive sector.
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Nissan Qashqai
Although Honda holds a stronger position in the merger talks, Mr Humberstone remains confident that Nissan will retain its unique identity Down Under, pointing to similar mergers throughout history.
“From a sales and marketing point of view, the brands will remain very separate. So locally, Nissan will be Nissan, Honda will be Honda,” said Mr Humberstone.
“We’ve got business case examples of that through the industry. Stellantis is a case in point. They’ve created a holding company and then they’ve got their individual brands.
“I’m not talking about the success of those individual brands, but their legacy and their independence as a model.”
Nissan is not only the third largest OEM employer in Australia, but it also has the fifth biggest dealer network. The carmaker has a partnership with Australian engineering firm Premcar and holds a large alliance parts warehouse in Melbourne, as well as a casting plant that produces 1.2 million components per year for global markets.
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Premcar employees celebrate production of 5000th Navara Warrior in Victoria
As part of its ongoing commitment to local customers, Nissan Australia has introduced a 10-year, 300,000km vehicle warranty, the longest of any carmaker in the country. A significant physical footprint on Australian soil remains a key selling point for the brand.
“In times like this, consumers want stability and a bit of security for better peace of mind,” explained Mr Humberstone.
“Having our own finance company and being arguably authentically Australian in terms of 91 years in the market – these things give people comfort.”
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