In December, Honda and Nissan announced plans to form a holding company aimed at creating the world’s third-largest automotive group, with a production capacity of 7.4 million vehicles annually. Both companies signed a memorandum of understanding, targeting mid-2025 to finalize the merger and establish the holding company by August 2025.
Mitsubishi Motors, initially interested in joining the alliance as a third partner, began evaluating its position in January 2025. Despite Nissan’s 34% ownership in Mitsubishi, the company hesitated due to concerns over its smaller size and potential lack of influence in the merged entity.
Reports suggest that Mitsubishi Motors aims to maintain its independence as a publicly listed company while focusing on regional growth, particularly in Southeast Asia. The company plans to collaborate with Honda and Nissan in areas like electric vehicles and software development instead of integrating fully into the holding company.
Market reactions reflected the uncertainty, with Mitsubishi’s shares dropping 3.9%, while Honda and Nissan saw smaller declines of 0.1% and 0.7%, respectively.
Mitsubishi’s final decision was to opt out of the merger, prioritizing tailored and flexible partnerships over direct integration. This move underlines Mitsubishi’s strategy to pursue sustainable growth and innovation while maintaining autonomy in a highly competitive global automotive market.
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