Automotive Industry Merger?
In this article, Joshua talks about the new joint company arising in the automotive industry.
In this article, Joshua talks about the new joint company arising in the automotive industry.
Nissan, near the end of 2024, started having a severe loss in profits and slower sales. These losses tanked them as a company, resulting in them going into an “Emergency Mode”, cutting their losses of 20% of production, resulting in the folding of roughly 9,000 jobs worldwide. The company saw about a 74% decline in operating profit. Such an emergent and dire situation led the CEO himself to take pay cuts of 50% to show his commitment. Nissan is also deciding to sell almost a third of its stakes in Mitsubishi, according to CarEdge and Fox Business. Many are seeing this as the end of Nissan.
Honda is pairing with Nissan in an attempt to save Nissan and also to help “better compete in an automotive world that’s facing seismic changes," as said by NPR. The full merging process is hoped to be completed in 2026. With Mitsubishi Motors included in the deal, the business is said to be a joint holding company. Mitsubishis part in the integration is said to be “ to explore the possibility of achieving synergies at an increased level through Mitsubishi Motors’ participation or involvement in the business integration,” According to Honda. Excitement seems to be amping up around this generational team-up. Even though Mitsubishi has not fully reached a conclusion on its involvement, its conclusion is said to be reached by the end of 2025. While it is still unknown how deep Mitsubishi's involvement will officially be, they have been quoted as appearing at meetings and talks between the other two companies.
Mitsubishi being part of this legendary merger would be groundbreaking and shake the automotive industry. Three of the top five Japanese automotive companies have the potential to revolutionize, and bring crazy new models to the world. One could only imagine the possibilities-- a GTR with V-Tec and the reliability of a Honda and Mitsubishi, plus fantastic AC (if you didn’t remove it for weight reduction). The engines could be impeccably tuned. Imagine a product similar to the engine of the “Godzilla” R32 GTR. Even a person who is not into cars could enjoy the merger and the SUVs and other kinds of vehicles that could come out of this joint company. With the rise of hybrid and EV technology, electric cars are definitely on the table for possible production. After all, this merger will create the third-largest automotive company, and its ability to cater to all types of automotive users is endless, according to NewAtlas.
The Goal for when the merger should be completed is Aug. 2026. Honda CEO Toshihiro Mibe has been quoted by Car and Driver as saying “the companies have decided they can better navigate the changing industry together.” The merger will heavily influence the automotive industry. Japanese cars have always been popular within the automotive scene. JDM, a popular car subculture, has even arisen from Japan. The combination of these industries is sure to be a fan favorite and will take the world by storm when they finally start releasing vehicles.