Honda and Nissan signed an agreement last month to explore creating a single holding company. If it happens, this would mean pooling their resources and working more closely than ever. Mitsubishi was briefly part of the conversation too. A separate document mentioned that the company was considering joining the effort. It seemed open to exploring what it could gain from teaming up with Honda and Nissan. Read More Lamborghini Debuts the 907 HP Temerario in the Middle East It looks like Mitsubishi is backing out. Reports say they’ve decided to go their own way and stay independent. It still plans to cooperate with Honda and Nissan on shared projects but isn’t interested in being part of a merger. For Honda and Nissan, the talks continue. If they move forward, the result could be one of the biggest automotive groups in the world—but without Mitsubishi in the mix. Mitsubishi's Uncertain Role in the Honda-Nissan Merger Mitsubishi’s future with Honda and Nissan is still up in the air. The company hasn’t said much about the proposed merger, other than that it’s still thinking things over. This decision isn’t simple. Nissan owns 24% of Mitsubishi, which gives it a lot of sway. On top of that, Renault is involved in the mix, with a 15% stake in Nissan and a shared alliance with both companies. But Bloomberg reports that Honda isn’t thrilled about Renault being part of the deal. Renault has been noncommittal so far. After Honda and Nissan announced their merger plans in December, Renault said it would “consider all options” while keeping its stakeholders’ interests in mind. Read More Ferrari F80 Takes Centre Stage at Times Square as US Tour Begins Mitsubishi is expected to break its silence early next month. The announcement could be made during its earnings report on February 3. If Mitsubishi stays independent, its ties with Nissan could still mean some involvement with the new Honda-Nissan holding company. Late last year, Mitsubishi announced plans to buy back enough shares to reduce Nissan’s stake from 34% to 27%. At the same time, reports from Japan suggest Mitsubishi is worried that its smaller size could leave it sidelined in decision-making if it joins the merger. Power Struggles and Absent Players The former Nissan and Renault boss Carlos Ghosn has called Honda’s move a “disguised takeover” of Nissan and Mitsubishi. He believes Honda’s larger size gives it the upper hand, allowing it to control the direction of the merger. Toyota, on the other hand, isn’t getting involved. Chairman Akio Toyoda dismissed the idea outright, saying the world’s largest automaker was never part of the talks. With Toyota’s stakes in Subaru, Mazda, Suzuki, and full ownership of Daihatsu, an even bigger merger would be a regulatory nightmare. Toyoda pointed to anti-monopoly laws as the main reason such a deal would be impossible. Nissan and Honda plan to complete their talks by June 2025 before setting up a holding company by August 2026. When that happens, shares of both companies will be delisted. Source: Reuters
