Honda and Nissan delay merged and updated until mid -February

As Honda and Nissan work hard, Mitsucho may choose to maintain independence

When Honda and Nissan revealed that they were discussing the merger into a company, the car world was caught off guard. Initially, the plan announced key details by the end of January, but the two automakers now postponed the schedule until mid -February.

According to the previous Nissan and Renault owner Carlos Ghosn, Honda’s participation in these speeches may not be completely voluntary. He suggested that the Japanese economy, the Ministry of Trade and Industry is putting pressure on Honda to require it to merge to dissipate Nissan. At the same time, Honda clearly stated that if the merger is about to occur, Nissan needs to prove that it can reverse itself in operation and finance.

Reading: Honda-Nigerian Merge-How do you solve Mitsubishi and the like?

The source of unnamed news shows that Honda hopes to have more time to evaluate Nissan’s reorganization work before promising the next step. Nissan has announced plans to reduce 9,000 jobs worldwide, reduce global production capacity by 20 %, and introduce advance retirement plans in three US factories. However, despite these measures, Kyodo News It is reported that Honda still does not believe it, and hopes that Nissan will have more aggressive cutting strategies.

What about Mitsubishi?

Then Mitsubishi, it has been loosely included in these discussions, but it does not seem to be eager to sign. The report shows that the company prefers public transactions, but may focus on more limited cooperation with Honda and Nissan in the future. Mitsubishi is expected to make the final decision of the best final decision this month.

Nissan’s arduous task

If Nissan hopes to achieve its goals before the merger deadline of August 2026, it will need to generate about 4.00 billion yen (2.6 billion US dollars) in fiscal 2026. This is a difficult challenge. Given that its operating profit has recently decreased from 336.7 billion yen (US $ 230 million) to 32.9 billion yen (225 million US dollars). To make matters worse, its net income in the first half of the 2024 fiscal year from 296.2 billion yen (US $ 2.2 billion) to only 19.2 billion yen (about 131 million US dollars).

Toshihiro Mibe, President and CEO of Honda, bluntly said: “Unless Nissan and Honda perform it as a company that can stand up, it will not be integrated.”