Report: Mitsubishi Motors Won’t Join Honda, Nissan Tie-Up
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Mitsubishi Motors Corp. won’t be a part of Honda Motor Co. and Nissan Motor Co.’s plans to combine their companies under a holding company, the Yomiuri, a Japanese newspaper, reported.
The smaller carmaker, which is partly owned by Nissan, will instead focus on strengthening its market share in Southeast Asia, according to the publication.
Mitsubishi Motors hasn’t made any announcements and is considering all options, a spokesperson for the company said Jan. 24, adding that any communications would be made at the appropriate time.
Mitsubishi’s shares fell as much as 8.7% in early Tokyo trading Jan. 24.
The two bigger automobile manufacturers unveiled plans last month for a drawn-out deal that will effectively bring Nissan under Honda’s control as Japan’s automakers struggle to keep up in an increasingly competitive global car industry.
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They’re planning to set up a joint holding company that will aim to list shares in August 2026. The two said they would announce a framework for ongoing negotiations in late January, then finalize terms of the deal this year before listing shares of the holding company in August 2026.
Mitsubishi Motors, which is 24.5% owned by Nissan, signed a preliminary agreement to explore joining the deal with Honda, saying it expects to firm up the decision, also by the end of January.
Honda and Nissan both are having trouble contending with ascendant domestic automakers in China, which surpassed Japan as the world’s largest car-exporting nation last year and is pulling further ahead in 2024.
Combining Honda, Nissan and Mitsubishi Motors would create one of the world’s largest carmakers, though the group would still be smaller than Japan’s Toyota Motor Corp.
Nissan’s biggest shareholder, France’s Renault SA, acknowledged its longtime alliance partner’s announcement, saying the talks with Honda were still at an early stage. Renault, which owns 36% of Nissan, also said in a statement that it will consider all options and continue executing its strategy, which includes joint projects with Nissan.
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