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Old 18th December 2024, 07:33   #1
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Nissan & Honda exploring merger possibilities | EDIT: Merger called off

This might be big if it takes off to merge two biggest auto giants to take on Toyota.

https://www.moneycontrol.com/news/wo...-12892308.html

From Indian market point, Nissan has been losing footprint and Honda has not released substantially new models. Probably this might be the best for them to get the renewed footprint.

Last edited by warp_10 : 18th December 2024 at 07:34. Reason: Correct data point
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Old 18th December 2024, 07:39   #2
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re: Rumour: Nissan & Honda exploring merger possibilities

Nissan Amaze, Nissan Elevate, Honda Magnite. These constructs have a more natural resonance than the present arrangements. It will bode well for the dealers and for consumers I suppose.
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Old 18th December 2024, 08:34   #3
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re: Nissan & Honda exploring merger possibilities

Nissan is too big, too broken & complicated, while Honda is too small & disoriented (of late). Honda doesn't have many EVs on sale, and has generally fallen behind the competition in terms of technology. Also, their quality has suffered worldwide in a cost-cutting drive. What customers want are the ol' top-quality Hondas of yore with the latest technology, but Honda isn't delivering that anymore.

Honda doesn't need the baggage of Nissan. Honda needs to sharpen its focus and invest in technology & quality. Honda is smart & knows this. That's why Honda has never been one to carelessly merge with anyone.

Nissan has been destroyed by its CEOs (including the grossly over-rated thief called Carlos Ghosn) and its failing relationship with Renault. Nissan today is a complex web of politicians, old & outdated products that need a serious revamp, disheartened dealers & customers who have abandoned the brand. Nissan cars are only bought in 2024 because of low pricing or easy finance (USA & other countries).

If anyone should get a majority stake in Nissan, it should be a very tough, brutal, efficient & rich Chinese EV company (SAIC, BYD, Geely). They will be ruthless and completely overhaul the company. But because of Japan-China history, I don't think the Japanese will allow that.

Last edited by GTO : 18th December 2024 at 09:00.
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Old 18th December 2024, 08:57   #4
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re: Nissan & Honda exploring merger possibilities

Quote:
Originally Posted by warp_10 View Post
This might be big if it takes off to merge two biggest auto giants to take on Toyota.
India is the only saving face for the Japanese as local have tried to protect local companies and the Japanese have found a safe haven here. That will not stay for long and the Japanese companies will be wiped off like in the mobile segment as only one Japanese mobile phone company, Sony mobile, still lives on albeit with minute sales in US and Europe. They have lost to the Koreans in the home electronics segment with the sole electronics company, again Sony, managing to stay put.

Honda-Nissan-Mitsubishi are not fighting Toyota but the Chinese. They survived the South Korean assault but may not with the Chinese. There are some more companies that should consolidate. Isuzu-Mazda-Subaru should form another alliance or their days are numbered.
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Old 18th December 2024, 09:17   #5
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re: Nissan & Honda exploring merger possibilities

Nissan & Honda exploring merger possibilities | EDIT: Merger called off-marketvalue.png

Even if it goes through, they'd still only value at 20% of Toyota.
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Old 18th December 2024, 09:51   #6
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re: Nissan & Honda exploring merger possibilities

https://www.livemint.com/companies/n...483514147.html

Not a rumour, but a reality.

Whilst we are skeptical of both companies regaining any face and lost fame on our soils, we are yet hopeful that they once again become the first choices of the car buyer. These two companies make stellar cars everywhere except in India. I say Goodluck very loudly and I sincerely hope this potential merger fixes all that's gone wrong for them both.
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Old 18th December 2024, 09:52   #7
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re: Nissan & Honda exploring merger possibilities

IMHO, Merging of both these companies doesn't bring out any quality or revolutionary products. All they want is to sustain in the market without actually packing their bags.
This move looks like a blind man leading another blind man.

Interesting to see what happens to the Renault-Nissan alliance after this merger.

Last edited by Sri0030 : 18th December 2024 at 10:21.
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Old 18th December 2024, 10:52   #8
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re: Nissan & Honda exploring merger possibilities

This merger looks like something orchestrated by the Japanese govt. Nissan going out of business will lead to a lot of Job losses. And Nissan falling into the hands of a foreign company that too due to Nissan failing as a company in both sales and technology will be of great shame to the Japanese.

That would be a double whammy which could be enough to topple the govt. Which is already on Shaky ground.
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Old 18th December 2024, 10:54   #9
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re: Nissan & Honda exploring merger possibilities

Quote:
Originally Posted by Sri0030 View Post
IMHO, Merging of both these companies doesn't bring out any quality or revolutionary products. All they want is to sustain in the market without actually packing their bags.
This move looks like a blind man leading another blind man.
First of all Japanese conglomerates have a superiority feel that they are the best innovators and they are the most premium players and are worth the every grain of salt. They should come to the realisation that that boat had sailed long ago once they decided that they have the the ultimate technology. Now they are no more numero uno. Atleast now they should not think that their products are premium and they should lower the guard and offer cutting edge tech at affordable prices.

I can say about Nissan as they seems less innovative but not about Honda. Sony has some great battery technology and are tied with Honda for a new brand named AFEELA and are now coming out with a new platform. Hope the tie-up helps Nissan leverage this innovation and challange the Chinese.

Quote:
Originally Posted by Sri0030 View Post
Interesting to see what happens to the Renault-Nissan alliance after this merger.
There is already arrangement between Renault-Nissan-Mitsubishi and addition of Honda will give them better leverage. But whatever anyone says, in today's terms, you cannot working in automotive industry without Chinese technology.
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Old 18th December 2024, 11:12   #10
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re: Nissan & Honda exploring merger possibilities

This is just a survival tatic . There seem to be no technical synergies around it .
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Old 18th December 2024, 11:59   #11
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re: Nissan & Honda exploring merger possibilities

If this happens, the best outcome would be short term sustenance of Nissan brand. Honda and Nissan can have shared suppliers and grab better deals in bulk. This will reduce costs in the short term. But in the long term, both Nissan and Honda will have to innovate. They've been too dormant in India. Honda and Nissan from 2010s was so active and optimistic about Indian market.

But this merger might not even pan out. Honda gives out a lone warrior vibe. Not sure how interested they'd be. Nissan has no tech or platforms that Honda can use (at least in Indian market). But for USA market, Honda can benefit from Nissan's SUV platforms. Nissan can benefit from Honda's superior hybrid tech.

These are very short term gains. They both have to invest heavily on EV platforms and rejig their lineups.
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Old 18th December 2024, 12:11   #12
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re: Nissan & Honda exploring merger possibilities

Well its hardly surprising. Especially considering the Nissan is already gasping for survival. We have a thread on that too.

https://www.team-bhp.com/forum/inter...-survival.html (Nissan is in dire straits, has only 12 - 14 months of cash to ensure its survival)

Commenting purely on the mergers in general, a good merger occurs between two entities which are specialized in non overlapping products so that the combined entity is a company that offers the best of both. I have no idea how this merger will come through.

Finally the Japanese government has always zealously guarded their industries so if they are mediating a merger then mostly its a done deal.
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Old 18th December 2024, 12:19   #13
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re: Nissan & Honda exploring merger possibilities

Question is does Honda need to get into more troubles that they are already in? Global Honda is smart in contrast to how they have been operating in India for a while now, so the news looks unlikely to materialize. Honda is a loved brand, which is a rare feat to achieve and they should reciprocate such love with genuine efforts which is lacking. They need to focus as to how to get back into the groove that they were into late 90s and early 2000s rather than exploring uncharted territories where they have never been.

Last edited by saket77 : 18th December 2024 at 12:31.
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Old 18th December 2024, 12:23   #14
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re: Nissan & Honda exploring merger possibilities

https://www.bbc.com/news/articles/cr56r74214eo

Seems this info is correct, but it is (quoted verbatim from the BBC report) : "Honda and Nissan are understood to have held exploratory talks about a potential merger to help them compete against electric vehicle (EV) makers, particularly in China."

So as I understand it, this is less likely taking the fight to Toyota. It is more to help them compete against the likes of BYD and other Chinese giants.

Nissan & Honda exploring merger possibilities | EDIT: Merger called off-tbydhanscaled1.jpg

However, given the astonishing speed and progress of the Chinese EV industry, this potential merger is unlikely to make much impact.
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Old 18th December 2024, 13:18   #15
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re: Nissan & Honda exploring merger possibilities

If this merger happens, it will be highly beneficial for Honda. They can plonk the e-power engines onto the City and Elevate. This could help them bring down the prices of these models and be much more competitive in the market. Added to this, they can also have access to Nissan's EV architecture and probably bring in the Leaf and Ariya as Honda's models in markets where these vehicles are not available. This will be beneficial to both the companies.
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