The target of over 8 million vehicles sold every year also including Mitsubishi is in the sights: competition between brands in the USA and the great possible synergies on the electric car of the future are at risk
“We have the potential to become a company world leader in mobility. From 2030 we need weapons to compete at a high level, and that’s why we are already preparing now.” This perhaps the most direct comment to the signing of the memorandum of understanding of last December 23rd, which officially opens the integration between Nissan and Honda. The words of Toshihiro Mibe, CEO of the latter, tell the story with already very clear clues who will lead the operations. Despite the clarifications of the circumstance, linked to the traditional reserve of Japanese culture, the announced merger is in fact an acquisition. The value of Honda on the market exceeds 44 billion dollarsabout 10 billion that of Nissanwhich in turn owns 34.07% of the shares of Mitsubishi Motors Corporationpotentially destined to be involved in the integration, adding its own 4 billion of capitalization dollars to a total that would therefore exceed i 58 billion.
Tight deadlines
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Without prejudice to the favor of the Japanese government to the consolidation between the two companies, the calendar of upcoming events between Nissan and Honda illustrates an operation that it would be foolish to consider as having been conceived in just a few weeks. By June 2025 it will have to be the definitive agreement was signed of integration, while in the month of April 2026 they will have to be kept extraordinary meetings of shareholderswith a formal vote that will kick off the birth of a parent company destined to control both Honda and Nissan, whose shares will be removed from the stock lists. The new holding company will instead be listed in the month of August 2026. Considering the dimensions involved, these are surprisingly short times.
Towards the podium
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Honda employs 194,993 workers, Nissan had 133,580 at the end of last March, with the conditions for the birth of a company leaner than Toyotathe world’s leading automotive manufacturer. Integration would lead to birth the third largest group. Honda plans to sell 3.8 million vehicles by March 31, 2025, the end of the 2024 fiscal year, to which must be added the 3.4 million units budgeted by Nissan. Mitsubishi worth 900,000 deliveries, bringing the adds up to over 8 million vehicleswith a clear overtaking on the group Hyundai-Kiawhich currently stands at 7.3 million. According to what was anticipated, Honda and Nissan combined will be able to generate annual sales exceeding 30 trillion yen (181.84 billion dollars) and an operating profit of more than 3 trillion yen ($19.18 billion).
North America in the balance
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Stellantis’ experience, with the aggregation of 14 different brands and the difficulty of not overlapping them in terms of products and customers, is a risk that the new Japanese company it will actually only race in North America. The most important market for Honda they are the United Statesi, representing one-third of vehicle sales in 2023. Along with Canada and Mexico, North America accounts for 37%. China’s share was 31%, but has suffered a substantial decline in recent months, theEurope for Honda it represents only 2% of deliveries. Also for Nissan the largest market is North America, accounting for 37% of vehicles sold in the 2023 financial year, with the United States accounting for 27%, China at 23%,Europe at 10%.
Electric horizon
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Honda aims to increase production of electric vehicles to more than 2 million by 2030, with 40% of its new sales accounted for by battery- or hydrogen-powered vehicles with fuel cell technology. By 2040, the share is expected to reach 100%. Meanwhile, it announced plans to sell 1.3 million hybrid vehicles a year, doubling 2023 levels. Nissan, once pioneer of electric vehicles which introduced the first electric car to the mass market Leaf in 2010, it aims for a 60% share of global sales by 2030 made up of battery-powered and hybrid vehicles. Both companies have already initiated notable developments from a technological point of view. In the short term, E-Power hybrid drive systems from Nissan and E:Hev by Honda they are not destined to converge. However, the horizon is different the second generation electric car. Nissan already has solid state batteriesmore spacious and in principle economical, ready for their debut starting from 2027. Honda is ready to launch the O Series family of cars in the coming weeks, developed starting from a new digital platform designed from the beginning for new energy management and vehicle customization services via software.
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