The merger between Nissan and Honda is in the balance. According to the Japanese press, the negotiations between the two giants of the car would have run on the question of the leadership: Honda would like to transform Nissan into a subsidiary, rather than considering it an equal partner. An idea that in Yokohama, Nissan’s seat, does not seem to be pleased at all.
The official announcement on the outcome of the negotiations is expected in mid -February, but the market already bets on a possible break. If the agreement were to jump, Nissan would risk being alone in an attempt to renovate, while Honda would lose the opportunity to strengthen himself in a sector in strong transformation.
Fusion at risk: the reasons for the clash
At the center of the problem is the control of the future company. Hondaeconomically more solid, would like to take on a dominant role and do Nissan one of his subsidiaries. A position that the latter considers unacceptable.
The car manufacturer is already struggling with a renovation plan demanding, which provides for the cut of 9 thousand jobs and a 20% reduction in the global production capacity. Accepting a subordinate position would risk making it even more fragile. The board of Nissan will then bring together to decide what to do, but the signals are not encouraging.
Immediate effect on the stock exchange: who flies and those who sink
The uncertainty about the merger had immediate repercussions on the bag:
- Honda shares went up to 8.19%, a signal that investors see the idea of a merger in which the brand remains in a dominant position;
- Nissan, on the other hand, lost 4.87%, a demonstration of how the market sees the possible failure of the agreement with concern.
If the negotiation should jump definitively, Nissan will have to find a new way to face the Competition of Tesla and Bydin addition to managing the economic consequences of 25% American duties on cars imported from Mexico, which could hit it more hard than Toyota and Honda herself.
Honda and Nissan together to challenge Tesla?
The agreement should have created a giant capable of producing 8 million vehicles per yearovercoming Hyundai-Kia and approaching Toyota and Volkswagen numbers. The goal? Compete in the electric car market, dominated by Tesla and the Chinese giants as Byd.
For Nissan, the merger also represented a possible way out of a difficult phase. Without an agreement, he will have to face one of the most radical changes in the history of the automotive industry alone.
And now? Honda and Nissan have announced that they will communicate their decision by mid -February. In the meantime, analysts wonder what the future of the two car manufacturers will be. If the merger does not go through, Honda could look for other roads to expand, while Nissan will have to reorganize himself to avoid being behind in the Cars in the car of the future. The game is still open, but the weather holds.
