Mitsubishi Motors, a minority partner of Nissan Motor, is considering not participating in the planned merger between Nissan and Honda, according to sources close to the matter who spoke with Reuters. Of true, that raises questions about the future of the Japanese and global automotive industry.
Three unnamed sources said that Mitsubishi Motors wished to retain its listed status while maintaining collaboration with Nissan and Honda. Nissan currently holds a 24-percent stake in Mitsubishi Motors, making it its largest shareholder.
Market impact
On Friday morning, Mitsubishi Motors shares fell by 6 percent in early trading, before limiting their losses to 3.9 percent at lunchtime. Nissan shares were down 0.7 percent, while Honda shares edged down 0.1 percent.
Nissan and Honda announced last year they were entering formal merger talks. If a deal goes through, it could create the world's third-largest automotive group, with an annual output of 7.4 million vehicles.
Reasons for the potential withdrawal
According to Japanese daily Yomiuri, Mitsubishi Motors is unsure of its ability to influence strategic decisions within the future holding company, given its relatively modest size. For the time being, the automaker prefers to focus on its development in Southeast Asia, a key market for the brand.
In a press release, Mitsubishi Motors confirmed the existence of rumours concerning its role in the merger, but stated that no decision has yet been taken and that various options remain under consideration.
Next steps for Nissan and Honda
Nissan and Honda plan to finalize their discussions by June 2025, and to create a joint holding company by August 2026. As of then, the shares of both companies will be delisted from the stock exchange.
Despite the potential strategic repositioning, Mitsubishi Motors seems determined to go its own way. Spokespersons for Nissan and Honda did not comment further on the Yomiuri's assertions, merely referring to the Mitsubishi Motors press release.