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Government figures tried to take Nissan Motor Co. and Honda Motor Co. to the melting table this year, but the assignment failed because it rejected the idea, the Financial Times reported Sunday.
The suggestion to primary automakers expired last year, amid a higher global festival in the automotive sector, to turn to autonomous electric vehicles, said the foreign business newspaper, which mentioned 3 other people familiar with the issue.
The concept of combining Nissan and Honda seems to come from Prime Minister Shinzo Abe’s advisers, fearing that the state of Nissan’s alliance with Renault SA of France has deteriorated since the arrest in 2018 of former boss Carlos Ghosn for monetary misconduct. reported the paper.
Abe’s aides feared that the deterioration of Nissan’s relationship with Renault would lead to the alliance’s collapse and “leave the Japanese company exposed,” FT said. The three-way alliance also arrives at the Japanese company Mitsubishi Motors Corp.
Officials at Honda, Japan’s second-largest car manufacturer by volume, opposed the idea and pointed to Nissan’s complex capital distribution with Renault, according to the report. Nissan, the country’s third-largest automaker, also opposed the company’s focus on regaining its alliance, according to the report.
The concept disappeared before reaching the company forums, FT said.
Of Japan’s top 8 car brands, 4 of them (Mazda Motor Corp., Subaru Corp., Suzuki Motor Corp.et Daihatsu Motor Co.) are connected through cross-shareholdings with Toyota Motor Corp., the country’s largest automaker, leaving Only Honda with capitalized.
The growing demand for electric cars and spending in generation has helped drive mergers or alliances of automakers around the world, with Peugeot owner PSA Group merging with Fiat Chrysler Automobiles NV and Ford Motor Co., and Volkswagen AG formed a partnership last year to reduce costs.
The Japan Times LTD. All rights are reserved.