Honda And Nissan Plunge In Initial Merger Talks
Date
12/19/2024 12:09:17 AM
(MENAFN- AzerNews)
By Alimat Aliyeva
Japan's Honda Motor and Nissan Motor have entered into
preliminary merger talks amid growing competition from Chinese
automakers and lower-than-expected consumer demand for electric
vehicles, Azernews reports.
According to the report, both companies are "exploring a
combination that will allow them to compete more effectively." If
the merger proceeds, it could result in the creation of a giant
automaker valued at $52 billion, positioning it as the
third-largest car manufacturer in the world, behind only Toyota and
Volkswagen. This newly formed company would attract significant
investments to challenge industry leaders like Tesla in the U.S.
and BYD in China.
BYD, the leading Chinese car manufacturer, saw a remarkable 40%
increase in sales compared to the same period last year. In the
second quarter of 2024, it ranked seventh in global sales,
surpassing both Honda and Nissan.
The merger may also have significant implications for Mitsubishi
Motors, in which Nissan holds a 27% stake. Mitsubishi could become
part of the expanded company, further strengthening its position in
the global market. Collectively, Honda, Nissan, and Mitsubishi
would produce around 8 million vehicles annually.
This strategic move highlights the growing pressure on
traditional automakers to consolidate in the face of a rapidly
evolving automotive landscape, where electric vehicle demand and
competition from Chinese manufacturers are reshaping the
industry.
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