Nissan Motor Co., Honda Motor Co. and Mitsubishi Motors Corp. have agreed to terminate the Memorandum of Understanding (MOU) to consider a tripartite collaboration.
Nissan and Honda signed a memorandum of understanding between the two companies “starting discussions and considerations for business integration” through the establishment of a joint holding company in December.
The news outlet last week reported that companies were discussing the merger. However, the Associated Press reported that the companies were considering closer cooperation and refused to merge in the future.
According to Nissan and Honda, the MOU, signed on March 15th last year, aims to establish a strategic partnership “to further accelerate efforts to achieve a carbon-neutral society and a zero-traffic factory society.” That was what I was saying. Then, on August 1, the company signed another MOU “to deepen the framework of strategic partnerships” and announced that it would jointly investigate the basic platform technology of next-generation software-defined vehicles (SDVs). did. The focus was on focusing on areas that were important for intelligence and electrification.
Mitsubishi, a member of the Nissan Alliance, has signed another MOU with Nissan and Honda to explore the possibility of “participation, involvement and sharing synergy” as part of the joint holding company.
“Today, the three companies will work together within the framework of a strategic partnership aimed at the age of intelligence and electrified vehicles,” Honda State’s press release on Thursday. “This framework was established at the MOU signed on August 1st last year, and strives to create new value and maximize the corporate value of each company.”
A press release from Nissan said since Honda’s signature, including the MOU, its management team and stakeholders, it has been discussing and considering the market environment, business integration goals, management strategies and post-integration structure. . Honda issued the same release.
“Honda is based on the joint stock transfers that Honda originally outlined in the MOU, and Honda is the parent company, and Honda is the majority directors based on the joint stock transfers. and proposed a change in the structure from the establishment of a joint holding company that appoints the CEO and the subsidiary Nissan through share exchanges,” the release states.
“As a result of these discussions, the two companies will halt the discussion and end the MOU by moving towards an age of electrification, with the speed of decision-making and the speed of implementation of management measures in an increasingly unstable market environment. I concluded that it is the most appropriate.”
The company plans to “collaboration in the future in a strategic partnership aimed at an age of intelligence and electrified vehicles.”
Nissan also announced on Thursday that it will implement a financial “comprehensive turnaround measure.”
“Nissan Motor Co. is implementing immediate measures to create a more lean, more resilient business that can improve performance and quickly adapt to market changes,” the press release said. It states.
Uchida, Nissan’s president and CEO, said, “Nissan aims to cut approximately 400 billion yen ($2.6 billion) and is fully committed to turnaround action. We are committed to diversifying our customers. We are committed to achieving a more efficient cost structure while promoting top line growth through enhanced and competitive products that meet the needs of our customers. We are committed to achieving a more efficient cost structure, with a pace and purpose. and running a turnaround focused on growth.”
The OEM said that with reduced fixed and variable costs, it will be a breach point for the automotive business of 2.5 million vehicles rather than 3.1 million in FY26, allowing a “stable” operating margin of 4%.
According to the release, fixed costs will be saved by approximately 100 billion yen from rebuilding of the manufacturing base and approximately 300 billion yen from development efficiency.
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Featured Images: Dakuku/istock
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