New Delhi : Japanese automobile manufacturing companies Honda and Nissan have announced their merger. After this, this company can move towards becoming the world’s third largest automobile company in terms of sales. The automation industry is currently going through a period of major change. On one hand the dependence on diesel-petrol is decreasing, while on the other hand it is facing tough competition from Chinese rivals. Both the companies said that they have signed an MOU on Monday. Mitsubishi Motors has also agreed to join talks to integrate its businesses.
cost reduction
Nissan Chief Executive Officer (CEO) Makoto Uchida said in a statement that we hope that if this merger is successful, we will be able to provide even greater value to a broader customer base. Automakers in Japan have lagged behind their bigger competitors in the electric vehicle sector and are now trying to cut costs and recoup losses.
50 billion dollar company
News of the possible merger was revealed earlier this month. One report said the deal was inspired by Taiwanese iPhone maker Foxconn’s aspirations to form an alliance with Nissan. Nissan has alliances with France’s Renault SA and Mitsubishi. Based on the market valuations of all three automakers, the merger could create a giant company worth more than $50 billion.
Will help you compete
Honda and Nissan’s alliance with France’s Renault SA and smaller automaker Mitsubishi Motors Corp will help it compete with Toyota Motor Corp and Germany’s Volkswagen AG. Toyota has technology partnerships with Japan’s Mazda Motor Corp and Subaru Corp. Even after the proposed merger, Toyota will remain Japan’s leading automaker. It had manufactured 1.15 crore vehicles in 2023. Whereas Nissan, Honda and Mitsubishi together will make 80 lakh vehicles. Nissan, Honda and Mitsubishi announced in August that they would share components such as batteries for electric vehicles.
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