Mitsubishi must decide before the end of the month whether to merge with Honda and Nissan

The cases of Volkswagen or the Stellantis Group They are good examples, but all eyes are on what is happening with major Japanese brands.

At the end of last year there was news that generated impact, which is the agreement to reach a merger between Sling and nissan. The idea is to unify its operations under a holding company with top executives chosen by Honda in a historic reorganization of Japan’s auto industry aimed at keeping the country’s second and third largest players competitive.

This comes amid a global wave of new competitors and technologies, especially the expansion of Chinese brands of cars. The expected deadline to achieve this merger is stipulated, according to various information, for mid-2025.

But long before, mitsubishi motors – member of the alliance they led Nissan and Renault – must decide by the end of January 2025 whether to accept integration with Honda and Nissan in a mega alliance.

The decision comes in a context where the brand has taken measures to strengthen its position: in November 2024, repurchased 10% of its shares that were held by Nissaninvesting 460.6 yen per share, with the aim of improving its capital efficiency and increasing returns for its shareholders.

“The fact that Mitsubishi has decided to buy back shares demonstrates its intention to participate as a strong partner in the eventual alliance with Nissan and Honda. This also highlights their commitment to maintaining a certain independence in the midst of an industry in transformation,” he said. Takao Kato, president of Mitsubishi Motors.

Nissan has been struggling since the scandal that began with the arrest of its former president Carlos Ghosn in late 2018 on charges of fraud and misuse of company assets.

Since then Nissan’s share price has fallen. For this reason, Honda is considered the only company capable of rescuing Nissan from the crisis it faces.

At the moment, Toyota leads the global market, with a total of 11.5 million cars sold in 2023followed by Volkswagen, which reached just over 9 million units.

Although at first, upon the announcement of the agreement, both Sling as nissan had seen their holdings grow by up to 60% (around mid-December), in recent days the value has fallen for the second, while Honda maintains its upward trend stable.

The information coming from Japan indicates that, as the situation stands, Honda would win five to one in shares over Nissan. That is, the new and possible automotive group would be represented in a 77% by Honda15% by Nissan and 6 or 7% by mitsubishi.