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As an automobile enthusiast, I’m excited to see Nissan, Mitsubishi, and Honda join forces! Bringing these famous brands together will lead to new, reliable cars and stronger technology. In today’s competitive world, this merger makes perfect sense. It will also help them strengthen their presence in India and better serve customers.

I hope this venture leads to revival of 3 brands. Imagine the creators of Skyline,Civic and Evo joining forces!

Can the experts here advice on what should people take into consideration before buying a Honda car in 2025 or 2026? And the impact on long term service of Honda after the merger?

Going forward Honda will take the charge of new organisation, they should help Nissan and Mitsubishi to rediscover themselves (not the jaguar way) and make sure there is very little overlap between 3 brands while also sharing ancillary parts, it’s easier said than done but companies have managed it in the past.
For example, Volkswagen under dr.Piech, helped Audi to be a luxury brand, Volkswagen as the mass market with Skoda and Seat being a cheaper alternative in the eastern europe where they positioned Volkswagen as a premium brand, while sharing parts and platforms

Another would be what Toyota is doing with Subaru, Mazda and Suzuki; where they have let individual brands to express themselves in their respective categories and sticking to it, while also benefit each other from theirs expertise.

Honda would have to pump in more cash into this merger, they are already investing into solid state batteries and they expect it to be production ready by 2030, till then they have time to develop their platform and software.This is the only way I see them competing against the Chinese.

I hope to see a revival of Mitsubishi under Honda, While Nissan can get their act right using the money infused by Honda.

I’m kinda worried about Honda, as we know Honda is not known to make longterm partnerships/alliances and it feels as if this M&A was forced upon them. Honda in general only makes short term partnerships to give themselves time to perfect their own product.
Case being, Honda partnered with GM for electric SUV, when they realised Honda customers were leaving empty handed when they visited a Honda dealership looking for a electric SUV, while their own product was to be launched in 2026, they launched a rebranded GM SUV as a stop gap solution, same was the case in 1990s when they rebranded a Isuzu SUV as Honda Passport while their own product “Honda Pilot” was in development and they usually exit the partnerships before the next gen product arrives

Honda does not fail….period.

If they set out to do something we can be sure they will perfect it.

They 5 years will be very turbulent.

Best of luck Honda

This is really going to bring Honda down. Honda & BMW have always thrived on their relatively independent nature and if they partnered with anyone, it was always very specific & very strategic. For a purpose.

But Nissan! Oh my god. No one wants to partner with Nissan today. Nissan globally is the equivalent of Premier Auto locally - no one wants to touch them with a barge pole. It is an extremely damaged company with outdated products, faulty management, messed up culture, massive inefficiencies, poor reputation, massive cost burdens...Nissan literally doesn't have any strong asset or redeeming quality. Even their dealerships are amongst the unhappiest.

This "merger" is definitely pushed onto Honda by the Japanese government. Toyota would've outright refused to partner with Nissan. Honda is caught holding the bag no one wants. And worse still, Mitsubishi wants to join this death marriage.

My sympathies with Honda. It's a company which I have loved, and whose cars I have enjoyed owning.

If Honda absolutely had to partner with someone, I wish it was BMW....or Ford, or any big forward-thinking Chinese giant (see what BYD & SAIC are doing). But Nissan, man, that is the worst possible match on the planet.

Honda has an incredibly strong legacy & a very loyal fan following. All they needed was to spend a couple of hundred million to get their high-quality days & technological edge back. But this is a new problem. Nissan will be the Albatross around Honda's neck. Call the "engagement" off, Honda. Dump this fiancé & find your mojo again. Do it alone, or marry a better partner.

This is one of the rare times I agree with Carlos Ghosn. Who knows Nissan better than him? He says:

Source

My earlier post on the topic:

Unpopular opinon, but this is not going to bring Honda down. Let's talk facts,

The technology collaboration was already started earlier this year based on interest from both parties. If you leave all those media frenzy speculations, Both Nissan and Honda are struggling in China which was their biggest market. Nissan had strength in SDV, Infotainment, Autonomous driving where Honda will share hybrid system in return.

And in the USA, Honda and Nissan has different customer base where Honda has strong points in their hybrid sales where Nissan has on Trucks & affordable sedan/CSUVs. Nissan almost updated all their outdated line-ups and new QX80/Armada/Kicks/Murano/Frontier been well received similar to Honda's hybrid sales success. What they are both weak in USA is pure electric vehicle strategy where Ariya nor Prologue couldn't hit the market as expected.

Where in EU, Honda is struggling could utilize Nissan's plant in UK.

So, its not going to bring down Honda nor Nissan, its a matter of urgency to cross-share investments as Toyota already did that long ago with Suzuki/Mazda/Subaru even though they had plenty of money in hand.

And what you said about Nissan's management is correct as its been dragging the company from a long-time with an unstable leadership and a useless Alliance which only stands for the name. What Nissan needs is a proper leadership to stabilize the past wrong-doings.

But apart from the speculations from media about Nissan going bankrupt, they have enough capital money to easily last for 4 or 5 years and the sales stats of Nissan (3.3M) is actually right behind Honda (3.9M). The real risk is if Nissan can't get hybrid into US market in time which will drastically reduce its sales and a riskier profit post 3 or 4 years.

If Honda's strong leadership and Nissan's strong technology can combine through this cross-holding parent company, ideally it should create better products for consumers. Its plain truth that Japanese OEMs can't go easily with foreign OEMs due to cultural differences, so Honda & Nissan is the only independent OEMs struggling with similar problems across the globe should come together makes sense.

Also, the MoU clearly states that Nissan has to do turn-around plans within next year to show that they are back in profit, so its not saving Nissan, Nissan has to save itself if they want to make this partnership work.

(I work in a sector where we closely analyze and interact with various OEMs and this is my personal opinion on this case)

Appears to be a desparate move. But a Japanese OEM partnering with another Japanese makes more sense. Nissan always needs someone to come and rescue them from the mess they create. Earlier it was Renault and now it is Honda. Says lot about their leadership. Let's hope Nissan finds it's mojo.

https://www.youtube.com/watch?v=ChyxC4iFbqE

Here is the interview with Carlos Ghosn! Very practical advice.

Nissan- Mitsubishi were losing out lately and the new alliance will prove to be synergistic hopefully.

The fate of Renault remains in limbo though the roadmap for Nissan and Mitsubishi with Honda is defined. Its like Honda's deal for two large bungalows within the same compound, wherein the bungalow with Japanese architecture (Nissan) with Japanese styled outhouse (Mitsubishi) has been dealt for.

The other bungalow built with French architecture (Renault) has presently been given a go-by.

I would say, in situations like these, the executives are generally privy to a wider array of facts than we are. A merger may not appear prudent at first; however, I believe both companies can potentially benefit from this.

Nissan is comfortable with innovative technology and has a capable hybrid scenario. The Altima is a decent car that has gained quite a reputation for itself in prominent markets like North America—though Nissan's CVT is notorious with mechanics.

I wouldn't think of it as a capable motor buying out a dilapidated automaker. An automotive giant like Honda, trying to reclaim its long-lost opulence, buys out a struggling (but capable) car company and utilizes its platforms and expertise to further propel its growth story.

Since the two companies are Japanese, merging will be swift and easy. Nissan is not exactly going bankrupt and has a capable portfolio going on. It needs help, and Honda can provide it with the support it needs. The two companies might not have an analogous product line; therefore, I do agree the merger is going to be tricky and a little difficult. But it can surely work out.

Every carmaker brings something to the table that others don't or can't—Nissan knows how to make efficient machines. As Honda devises its expansion in major markets, it can take over Nissan's factories, workforce, platforms, its network of dealers, and, more importantly, its service workshops across the world.

I would suggest they bear caution, however. Honda has obvious inefficiencies in the way it ITSELF works, and giving a lifeline to workers of another Japanese carmaker must not be seen as the panacea for problems. Honda needs to make tough decisions if it has to stay relevant in the dynamic car markets of 2025, including India, where people like me can't help but wonder if the management is sleeping or awake (albeit ignorant).

Incorporate substantial changes into your products, learn from your mistakes, and LISTEN to feedback. This merger will be a disaster if you don't make the best of it, and this time there will be no solution. You can work your way out of launching outdated products but the damages that comes from incorporating a dying company will be enormous, and the consequences shall be dire if not considered seriously.

I hope you know what you're doing, Toshihiro Mibe. This is a big decision and you're playing with fire.

As a Renault car owner in India, I am worried about Renault-Nissan's future in our country. Nissan will be okay with its new partnership with Honda. But Renault alone can't survive in India with their current sales.

I am curious about this merger. There is big difference in how both the companies operate. Nissan has been the second largest Japanese automaker and operates in most vehicle segments. It is a different matter of how successful Nissan and is. Honda on the other hand has been an engineering driven company. Honda has always played to their strength and chosen its segments while being prudent at it. Honda has a better reputation than Nissan IMHO. Their product lines have a huge overlap with Honda being the better one in the common segments. Sure they are some synergies like Nissan having a larger presence than Honda in Europe and in some segments where Honda does not have a product. But clearly Honda does not need those products.

Now both Nissan and Honda are not in their prime with both trying to find their mojo and having their own struggles. Two companies having their own issues, getting into merger which does not solve their issues. Why would you want to drag a financially sound Honda into the mess that Nissan has gotten into.

It does look like the Japanese Govt is behind this merger. If it so, why don't they infuse Capital into Nissan and get a minority stake to placate the public. Even Renault has a partial Govt stake. Merge Mitsubishi into Nissan if you want to create a strong automaker. Nissan and Mitsubishi might get along well rather than Honda. Leave Honda from this mess.

Just my take.

This reminds me of a merger between Vodafone India & Idea which created V! to take on Jio and survive. Their current condition after the merger shows that they're barely surviving.

In this scenario I'll put BYD as Jio & Toyota as Airtel.

Coming to Nissan, they already have an alliance with Renault and are Nissan's largest shareholder. So where does that leave Renault? Do they indirectly hold a stake in Honda or do they sell off their stake in Nissan or do they also participate in the Alliance?

Also how big the alliance has to be, before it comes under the category of a Cartel?

If Renault is left out in the cold, won't it become a survival crisis for them as they can't take on Stellantis, VW or Toyota or other alliances alone?

Coming to Nissan, do Honda know the size of the pit in Nissan? My only worry is that Honda don't bankrupt themselves in trying to save Nissan from brink of extinction. That will be a huge loss in the motoring world considering Honda are present in 2 wheelers too.

These are interesting times as everyone is investing for future EV sales & technology but in the present the sales are not happening and the emission norms are not helping the companies with their ICE plans. To rub more salt to the injury, Hybrids are a stop gap, neither here nor there and hence customers are not buying them. This is a period of transition and everything is in a flux and nobody has a clue except everyone's operating on FOMO. Let's see what happens in the future.

This is similar to three poor swimmers getting together hoping to win the 100 m freestyle Olympics event.

I see this becoming the Japanese version of the disaster that is Stellantis.

Curiously, Nissan and Mitsubishi were run into the ground by Ghosn and Stellantis by his close associate Carlos Tavares.

Without getting into the merits of this combination, the fact is that it makes no sense whatsoever for Japan to have 6 mass market car makers (Toyota, Subaru, Suzuki, Honda, Nissan and Mitsubishi), when there is increasing investment needed in electrification and competition from the Chinese.

The auto industry has always been about scale - today, it is only the US, Chinese and European markets that provide that advantage. We now have 3 US mass auto makers (GM, Ford and Tesla), 3 in Europe (VW, Stellantis and Renault), several in China (but I suspect that will eventually shake out leaving BYD, SAIC and perhaps one other (May be Geely) as the eventual survivors). Under such circumstances, how do you justify the presence of 6 Japanese?


All auto makers had used their technological lead to benefit from scale in China - but post the rapid shift to EVs in China, at least mass market auto makers have been caught napping. While trade barriers may protect the US and European markets, the Japanese profit pools in South East Asia, the Middle East and Africa are going to be wiped out by Chinese competition.

So some form of consolidation is going to be necessary to preserve the Japanese auto industry. And I don’t think that can be just through alliances - what is needed is to take costs out and have fewer manufacturers (even if they preserve differentiated brands).