According to Japan’s Kyodo News, Mitsubishi Motors has once again addressed speculation about joining the Nissan-Honda Alliance, stating that "discussions are ongoing to make a swift decision."
Reports on January 26 suggested that Mitsubishi was contemplating leaving the alliance, fearing that its influence might be overshadowed by Honda and Nissan. While Mitsubishi aims to maintain its cooperative ties with both companies, it may choose to retain its independent listing.
On January 31, reports indicated that a Nissan spokesperson confirmed the company would announce its integration plans with Honda by mid-February.
Earlier, Nissan and Honda revealed that they were exploring a potential merger, with plans to establish a holding company by August 2026. This entity would oversee both brands as subsidiaries, potentially making them the world’s third-largest automotive group by sales, following Toyota and Volkswagen.
Additionally, if Honda acquires Nissan, Renault has reportedly expressed interest in selling its 36% stake in Nissan at a premium. Sources indicate that Renault executives flew to Japan earlier this week to voice concerns about the merger's structure. Since negotiations remain confidential, the sources requested anonymity. Renault seeks to ensure that Nissan’s value is fully recognized, regardless of the merger’s final form.
On December 23, Honda and Nissan officially announced their merger discussions and formed an integration committee to facilitate the process. According to their statement, the goal is to achieve annual sales exceeding 30 trillion yen and annual operating profits surpassing 3 trillion yen. Mitsubishi is expected to make its decision on joining the merger by the end of January 2025.
Reports suggest the merger negotiation ratio between Honda and Nissan could start at 5:1, based on stock prices and asset values. Additionally, Honda has proposed that Nissan must triple its annual operating profit before the fiscal year 2026 to ensure the merger’s success. However, recent data shows that Nissan’s operating profit for the first half of the 2024 fiscal year has plunged by 90%.
Following Nissan’s mid-term financial report for the period ending September 2024, released on November 7, the company announced a restructuring plan. This includes laying off approximately 9,000 employees—7% of its global workforce—as well as reducing its senior management positions from 63 to a lower number by April. These measures align with the planned business integration agreement with Honda, expected to be signed in June, as part of a broader organizational restructuring effort.
