A century transformation

The Background: An Overdue Step?

The Japanese auto industry is under pressure. While domestic giants like Toyota expand their dominance, aggressive Chinese electric vehicle manufacturers like BYD and Geely are pushing into global markets. Analysts have long been talking about a necessary consolidation in Japan. Now Honda seems to be taking the helm.

According to insiders, external factors were also at play. The Taiwanese electronics giant Foxconn, known as Apple's iPhone producer, apparently showed interest in Nissan - a signal that alarmed Honda and Nissan. Foxconn has since paused its plans, but the message was clear: The Japanese automotive industry must adapt - or perish.

Honda takes the wheel

Although Nissan sits at the table as an equal partner, it is clear who takes the lead here. Honda, with a market capitalization four times that of Nissan, will appoint the majority of the board members of the new holding. In addition, Honda plans a massive $7 billion stock buyback to strengthen its position.

While Nissan struggles with declining sales and outdated models, Honda shows a significantly more robust performance. However, CEO Mibe emphasized that it is not a rescue mission for Nissan: "We want to highlight the benefits of integration. This is not a rescue attempt.

The Challenges: Fusion Without Crash

However, the merger faces major challenges.

Moreover, the approval of Renault, which holds 36% of Nissan, is still pending. Historically, the relations between Nissan and Renault have not always been smooth, which could create additional friction points.

What's at stake?

A successful merger scenario could redefine the automotive industry. With combined resources in electrification, autonomous driving, and software development, the Honda-Nissan-Mitsubishi trio could form a strong front against competition from China and the USA.

But skepticism remains.