Honda Nissan and Mitsubishi intend to combine

Honda, Nissan, and Mitsubishi intend to combine

Honda, Nissan, and Mitsubishi intend to combine to form the third-biggest automaker.
In the face of increasing competition from Chinese electric car producers, Japanese automakers are negotiating the creation of a joint holding company.
Honda, Nissan, and Mitsubishi are negotiating a three-way merger in a daring attempt to combat dwindling sales and growing competition from Chinese automakers.
In terms of yearly sales, the collaboration, if it is approved, will make the company the third largest in the world, behind only Toyota and Volkswagen.

Honda and Nissan have already decided

Mitsubishi is anticipated to make a decision by January, but Honda and Nissan have already decided to investigate commercial integration through a joint holding company.
By fusing the resources of two of Japan's biggest automakers with Mitsubishi's knowledge of specialized markets, this combination has the potential to completely transform the country's automotive industry.
As automakers switch from gasoline and diesel engines to electric vehicles (EVs), the automobile industry is going through a seismic transformation. Toyota's early adoption of hybrid technology has allowed it to preserve financial stability, but Honda, Nissan, and Mitsubishi are finding it difficult to make investments in the EV transition.

Traditional automakers are under pressure

Traditional automakers are under pressure to adjust as a result of the aggressive expansion of EV presence by Chinese brands such as BYD and SAIC.
Carlos Ghosn, the former CEO of Nissan, is still opposed to the combination, pointing out that Honda and Nissan are working on the same projects. Ghosn, who was speaking from Lebanon, referred to the idea as unrealistic, claiming that it might not produce the anticipated benefits.
In spite of this, Toshihiro Mibe, the CEO of Honda, called the merger negotiations a once-in-a-century chance and emphasized the necessity of taking decisive action to adjust to the changing automotive environment. Makoto Uchida, CEO of Nissan, reiterated this view, emphasizing the possibility of substantial production and innovation synergies.
The final judgment is anticipated early next year, and this merger may be a turning point for the global auto industry.