On December 23, 2024, Honda, Nissan, and Mitsubishi Motors held a joint press conference and officially announced the commencement of discussions for a management integration between Honda and Nissan. Mitsubishi Motors is expected to decide by the end of January 2025 whether to participate in this integration. As a result, the three companies have signed a MOU and have decided to move forward with further discussions.
Purpose of Management Integration
Nissan and Honda have built a strategic partnership to enhance their competitiveness in the automotive industry, which is progressing toward increased intelligence and electrification. The two companies signed a memorandum in August 2024 to begin cooperation toward intelligence and electrification, marking the first step toward their management integration. Mitsubishi Motors, as a long-time partner of Nissan, will play an important role in the upcoming discussions.
The goal of the management integration is to strengthen competitiveness through obtaining scale advantages, improving research and development efficiency, and optimizing production sites. Honda's President, Toshihiro Mibe, stated that to lead the transformation of mobility, a more bold transformation is required rather than cooperating in specific areas. Furthermore, the aim is to create a leading company that will generate new world-class value, with sales exceeding 30 trillion yen and operating profit exceeding 3 trillion yen, through the management integration.
The discussions on management integration between Honda, Nissan, and Mitsubishi Motors represent a crucial step toward strengthening competitiveness as part of a major transformation in the automotive industry. Attention will be focused on how Mitsubishi Motors will engage in this integration process in the future.
Management Integration Terms
At this stage, specific conditions have not yet been disclosed. The management integration between Nissan and Honda will proceed through the establishment of a joint holding company, and Mitsubishi Motors is expected to also benefit from the synergies resulting from this.
Schedule
- August 1, 2024: Nissan and Honda signed a memorandum to begin discussions on a strategic partnership for intelligence and electrification.
- December 23, 2024: Honda and Nissan officially started the discussions on management integration and announced that they would proceed with discussions regarding Mitsubishi Motors' potential participation.
- End of January 2025: Mitsubishi Motors is expected to decide whether to participate in the management integration.
- June 2025: The final agreement will be signed, clarifying the details and implementation plan for the integration, including the stock transfer plan.
- April 2026: An extraordinary general meeting of shareholders will be held.
- August 2026: The integration will be completed, and the new company will be established.
