The carmaker has been slashing jobs, cutting vehicle production and reporting lower profit. Nissan has been slower than rivals in refreshing its lineup, and it has fallen behind in the electric-vehicle race it once led.
Now, it is looking to Honda for a lifeline.
The two carmakers said they were in talks over a merger that would be poised to create the world's third-largest automaker by sales.
The idea of two of Japan's biggest rival brands cohabiting under the same roof would once have been considered absurd, but the companies have grown closer as Nissan weakens, announcing this year plans to share costs and work together on electric vehicles.
Nissan shares rose more than 30% in the two trading days after the announcement about merger talks, while Honda shares declined almost 5% in the same period.
The combination could help fortify the carmakers against global threats including a wave of new competitors coming from China that have taken a lead in the electric-vehicle race.
For Honda, a merger with Nissan offers the promise of sharing the high cost of developing new technologies. The Japanese government, which is worried about the auto industry's competitiveness versus China and is subsidizing technology research, has suggested it would welcome the combination.
Nissan is also the largest shareholder in Mitsubishi Motors and collaborates with it on technology, a relationship that would likely carry over into a merged Honda-Nissan company. Together, Honda, Nissan and Mitsubishi sell more than eight million vehicles annually.
But Honda and Nissan have hurdles to overcome before they can make their deal final. The two companies have different cultures. They sell the same types of sport-utility vehicles and sedans for the mass market in the U.S. and elsewhere.
This story is from the December 23, 2024 edition of Mint Ahmedabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 23, 2024 edition of Mint Ahmedabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
A Boycott of Costco for Its DEI Efforts Is Not Likely to Succeed
The US retailer has a loyal base of shoppers that it's unlikely to lose
Wealth tax: Let's judge it by principles of taxation
Tax canons laid down by Adam Smith remain relevant, though his list has been extended. Test the idea of a wealth tax against these, lest we get carried away by progressive idealism
Hacked in 2024? India's privacy rules require you to take action
Draft digital personal data protection rules demand that data breaches be reported retrospectively
Let's take cues from Piketty to raise India's tax revenue
When it comes to budgeting, there are some revenue streams that are linked with broader growth in the economy.
Health insurance claims: How to ensure grievance redressal
My health insurer recently rejected my claim, citing my inability to provide key internal hospital papers that they require. Despite having submitted all other necessary documents, they are insisting on these specific papers, which I am unable to obtain from the hospital. I believe my claim is valid and that I have complied with all the necessary documentation required. What are my options to ensure that my grievance is handled fairly and my claim is reconsidered? -Name withheld on request
Top 5 AI Trends To Watch In 2025
From agentic systems to humanoids, AI is everywhere. But ethical concerns remain over its growing role
MFD, RIA, RA: Explore your career as a financial adviser
Understand the earning potential, licensing and compliance to choose your best suited path
Cutting Through the Clutter: Key Focus Areas for Retail Investors in 2025
Remember that social media is for fun, and not serious topics such as personal finance advice
Centre to give LPG subsidy to oil PSUs
The government is likely to provide a subsidy of ₹35,000 crore to state-owned Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) to make up for losses they incurred on selling the fuel this fiscal, people aware about the development said.
Adani group to sell 20% in Wilmar JV
Adani Group plans to sell a stake of up to 20% in Adani Wilmar amid plans to exit.
