Honda and NissanTwo of the largest car manufacturers in Japan are in conversation to merge in an attempt to combat the challenge of Chinese electric vehicles (EV) manufacturers. The merger would be one of the world’s largest automotive groups if it is completed, alongside Toyota, VolkswagenGeneral Motors and Ford.
The rise of Chinese EV -Makers, Like Bydhave shaken the global car world, forcing consolidation. Honda Chief Executive Officer Toshihiro-Honda Motor Co. Must act quickly to prevent Japanese car manufacturers from being left in the global shift to electric vehicles, the Chief Executive Officer said on Thursday, while he also pushes back a national call to abolish petrol -based vehicles by 2035. “The structure From the car industry is changing rapidly, “said Mibe.
And it would include Mitsubishiwhose largest shareholder is Nissan, so that all three companies can bundle resources to better compete with global rivals such as Tesla. By bundling their expertise and technology, they would have a greater capacity to produce competitive EVs and lower costs.
The largest EV producer in the world, China has cornered the EV market by lower production costs and government subsidies. Konrad Putzier reported that the European Union responded to the threat by imposing the rates up to 45% on the import of Chinese EVs. But it has expressed concern about higher EV prices for consumers.
Nissan, which has been struggling with sales and job reductions in recent years, regards the merger as an opportunity to regain its competitiveness. Honda and Nissan together have more than $ 191 billion in combined annual turnover, CEO Makoto Uchida noted. Even Mibe claims that the merger was a Nissan Bailout plan and claimed that it was a strategic step that was driven by the need to survive.
Honda and Nissan have been working together on EV technologies since March, when the two companies signed an extensive cooperation deal for the development of batteries and other progress in August. But the proposed merger would probably encounter the end of the decades old partnership of Nissan with Renault and political opposition in Japan about the chance of job losses.
The conversations were rejected by the former Nissan chef Carlos Ghosn as a sign of despair, but Mibe defended the plan as a vision for the future. By bundling their resources, the companies want to strengthen their position in an ever -changing automobile market and to defend intensifying competition from China and elsewhere.
