HONDA’S CEO has sparked rumors after his stunning confession to a question about a potential merger with Nissan.
Toshihiro Mibe, 63, who has headed up the Japanese car giant since April 2021, was asked why he thought Nissan would be a good partner.
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“That’s a difficult one,” the Honda boss admitted, referring to the deal that some critics have slammed as a desperate gamble.
He failed to fully explain why the merger would be a benefit to both car giants.
The deal between Japan’s two biggest automakers, which would create an enormous firm producing 6.5 million vehicles annually, initially sparked excitement among many.
If completed, the company would become the third-largest automaker in the world.
But now questions are being asked about the wisdom of combining the financially strong Honda with Nissan, which some have said is in dire straits.
Rumors abound that the potential merger may have an ulterior motive.
Some have speculated the move was endorsed by the Japanese Ministry of Economy, Trade and Industry as an attempt to prevent the possibility of Nissan being bought by Taiwanese company Foxconn.
Honda bosses have insisted the merger is “not a rescue,” while ex-Nissan bosses have criticized the move.
Carlos Ghosn, Nissan’s former CEO, has been vocal in his criticism of the merger.
“That means you’re putting control above performance,” he recently said.
“Personally, I don’t think it’s going to be successful.”
The merger is not surprising given both Nissan and Honda are currently working together on in-car technology.
That includes developing electric vehicles and automotive software.
They are also sharing parts for EVs, such as batteries and research software for autonomous driving.
Nissan’s statement
Nissan shared the following statement with The U.S. Sun about the potential merger with Honda and Mitsubishi:
“The content of the reports that Honda, Nissan and Mitsubishi Motors are considering a business integration is not based on an announcement from our company,” Nissan spokesperson Kyle Bozeman said.
“As announced in March and August, Nissan, Honda and MMC are considering various possibilities for future collaboration including the content of the report, but no decisions have been made.
“If there are any updates, we will inform all stakeholders at the appropriate time.”
Both Honda and Nissan are working to integrate AI into their vehicles.
The rumored merger could be completed as soon as next year.
Mitsubishi Motors, a smaller manufacturer that works closely with Nissan, could also be involved in the potential merger.
The merger would also standardize vehicle platforms across product segments between the two automakers.
This could reduce costs, improve development efficiencies, and increase sales.
There would also be a stronger pivot into autonomous vehicles.
