1. Home
  2. / Automotivo
  3. / Honda to merge with Nissan, but makes it clear it doesn't want to mix with Renault
reading time 5 min read Comments 3 comments

Honda to merge with Nissan, but makes it clear it doesn't want to mix with Renault

Written by Alisson Ficher
Published 16/01/2025 às 23:59
Updated 17/01/2025 às 00:16

Honda is determined to merge with Nissan, but wants to distance itself from Renault. The purchase of the French automaker's shares could cost $3,6 billion and change the landscape of the global auto market. If the plan is approved, the companies will create a conglomerate to compete with giants such as Toyota and Stellantis.

Have you ever imagined the impact that a merger between two Japanese giants, such as Honda and Nissan, could have on the global automotive market? The idea itself is already attracting attention and changing the dynamics of the sector.

However, what makes this story even more intriguing is Honda's firm stance on a third element in this equation: Renault.

The Japanese automaker has made no secret of its discomfort with its French partner's involvement and is willing to spend billions to resolve the issue. But why? And what is really at stake?

The merger plan and Renault's role

According to information from Bloomberg, Honda and Nissan are in advanced negotiations for a merger that could culminate in the creation of one of the largest automotive conglomerates in the world.

The union promises to revolutionize the sector by sharing platforms and technologies, keeping the brands separate, but under the umbrella of a new holding company, similar to the Stellantis model.

However, Renault's presence in the middle of these negotiations is creating discomfort.

The French automaker currently holds 35,7% of Nissan's shares, and Honda does not appear willing to go through with the merger while that link exists.

To resolve the issue, the Japanese company proposed that Nissan buy back Renault's stake, which would require an investment of around US$3,6 billion.

Why does Honda want to distance itself from Renault?

Although it may not seem like a personal issue, Honda's concern is strategic.

According to Bloomberg, the automaker fears that, during the merger process, Renault could sell its stake to an unknown third party, which would bring instability to the agreement.

This apprehension is reinforced by recent rumors that technology giant Foxconn is interested in acquiring Renault's shares in Nissan.

With the possibility of a third party becoming involved, Honda believes the best way forward would be to keep things “in-house”, eliminating the presence of Renault before moving forward with plans.

This stance also suggests that the French automaker is not fully aligned with the merger project.

In an official statement, Renault said it would “consider all options based on the best interests of the group and its stakeholders.” A vague statement that raised even more suspicions about its involvement in the deal.

What does Nissan say?

So far, Nissan has not officially commented on Honda's proposal to buy back Renault shares.

The Japanese automaker faces a financial dilemma, as the $3,6 billion valuation is not trivial, especially at a time when the automotive sector is facing global economic challenges.

Representatives for Honda and Nissan declined to comment directly on the negotiations when contacted by Bloomberg.

The silence fuels speculation about the future of the alliance and the role of each company in the conglomerate that is being designed.

And Mitsubishi, where does it fit into this story?

Another important piece of the puzzle is Mitsubishi, which has been part of the Nissan-Renault-Mitsubishi alliance for decades.

Despite expressing interest in participating in the new conglomerate led by Honda and Nissan, Mitsubishi has yet to make an official decision. Its entry could further strengthen the holding company, but at the same time, add a new layer of complexity to the deal.

The future of fusion and next steps

The feasibility of the merger between Honda and Nissan is still under analysis and should be decided by the end of January 2025.

If the plan is approved, the integration of the companies will be gradual, with completion expected only at the end of 2026.

During this period, many challenges will need to be overcome, including the possible buyback of Renault shares and defining how Mitsubishi will fit into the new structure.

If all goes according to plan, the automotive market will witness the creation of a conglomerate with enough strength to compete on equal terms with giants like Toyota and Stellantis.

Honda and Nissan will continue to exist as independent brands, but with a unified technological and production base, which promises to reduce costs and accelerate innovation.

Impacts on the global market

The possible merger is already generating debate among industry experts. Some analysts believe that the merger could consolidate the leadership of Japanese companies in strategic markets, such as electric and hybrid vehicles.

Others, however, warn of the risks of poorly managed integration, especially considering the cultural and operational differences between the companies involved.

Furthermore, the exclusion of Renault from the process could have repercussions on the commercial relationship between Japan and France.

The Renault-Nissan alliance, once a symbol of international cooperation, risks disintegrating completely if Honda is able to impose its terms on the merger.

And you, what do you think?

Will Honda and Nissan be able to overcome the obstacles and create a conglomerate that will revolutionize the automotive market? Or will Renault's presence be the breaking point that makes the deal unfeasible? Leave your opinion in the comments!

  • Reaction
  • Reaction
  • Reaction
3 people reacted to this.
React to article
Registration
Notify
guest
3 Comments
Older
Last Most voted
Feedbacks
View all comments
George
George
17/01/2025 23:24

And they say that Renault helped Nissan with this partnership, but I don't see how a French automaker can do any good for a Japanese automaker, after all, French brands can't even help each other.

MBP
MBP
In reply to  George
18/01/2025 07:49

YES, THIS RENAULT IS THE MOST CARELESS COMPANY AS FAR AS CUSTOMER CARE IS CONCENED, THEY THREATEN CUSTOMERS TO WITHDRAW GRIEVANCES !!!

Dirceu de Souza
Dirceu de Souza
19/01/2025 00:09

This move would be convenient for Nissan, which has been suffering from all kinds of problems with the Frontier's diesel engines, which are manufactured by Renault.

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines, stints on broadcast TV channels and over 12 online publications. Specialist in politics, jobs, economics, courses, among other topics. Professional registration: 0087134/SP. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

Share across apps
0
We would love your opinion on this subject, comment!x