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Mitsubishi Motors Corp. has begun not to join the fusion conversations between Honda Motor Co. and Nissan Motor Co. , the Yomiuri Shimbun has learned. The corporate is now making arrangements in this decision.
Honda and Nissan plan to identify a new corporate portfolio in which the two would operate. Mitsubishi Motors had planned to sign up for merger talks but now plans to maintain its registration cachet while strengthening cooperation with the two companies, according to several sources.
The automaker will for the time being be of its existing structure, allowing its control to make flexible decisions, because the corporation aims to grow its market share in Southeast Asia, where it has a strong presence.
When Honda and Nissan announced in December that they would enter into merger talks, Mitsubishi Motors said it would decide by the end of January whether to join. This month, Mitsubishi Motors President Takao Kato expressed that the company would carefully assess the progress of the Honda-Nissan merger talks, saying, “We are not necessarily moving toward a merger. It is one of the options.”
In 2016, led by then President Carlos Ghosn, Nissan acquired a 34 % participation in Mitsubishi Motors, which suffers from a control crisis after a scandal on the manipulation of fuel economy data. Driving, with 27 % of Mitsubishi Motors’ actions, making the last corporate an associate of the equity method.
In this context, Mitsubishi Motors had thought of how his participation in fusion conversations. The car manufacturer has the strength of the logo in Southeast Asia, so its main battlefield is another of Honda and Nissan, which is directed to the US market. It was believed to join the fusion probably all the existing advertising strategy of Mitsubishi Motors.
However, Mitsubishi Motors’ market capitalization was about ¥700 billion as of Thursday, much smaller than Honda’s ¥7.9 trillion and Nissan’s ¥1.6 trillion. There were concerns that if Mitsubishi Motors participated in the merger, it would face difficulties in getting its own perspectives reflected in the joint holding company’s managerial decisions.
Mitsubishi Motors’ shareholders are also thought to be behind the company’s consideration of not joining the merger talks. Shareholders such as Mitsubishi Corp., which owns about 20% of Mitsubishi Motors’ shares, is said to be of the belief that Mitsubishi Motors should first observe the effectiveness of restructuring measures being implemented by Nissan, which is in the process of rebuilding its business.
Mitsubishi Motors believes that it is imaginable to supply all cars and remove technical links without hurrying advertising integration. The automobile manufacturer also thinks that even giant corporations such as Honda and Nissan will be difficult to run huge progression prices itself in the fields of autonomous driving and new generation cars, as cars explained through the software, whose Capacity can advance by updating its software. .
The general volume of Global Sales of Honda and Nissan 7. 35 million sets in 2023. The figure is the third largest among car brands equipment, even without adding the sales of Mitsubishi Motors, which had 780,000 sets.
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