Honda and Nissan, two historic Japanese rivals, are considering a merger. Foxconn, the manufacturer of the iPhone could also be involved. An alliance that says a lot about the state of the market.
Updated article : Bloomberg reports in a new paper that the Taiwanese giant Foxconn would be interested in being involved. The company which manufactures the iPhone in particular has contacted Nissan to buy back shares. This information is still a rumor for the moment, but it makes sense.
Foxconn is indeed seeking to carve out a place for itself in the electric car sector, with products already ready to be marketed. But the Taiwanese giant is experiencing many difficulties in the field.
Honda and Nissan, two historic giants of Japanese industry, are preparing to begin negotiations with a view to a possible merger. This news, revealed by the newspaper Nikkeiwould mark a considerable turning point in the history of the Japanese and world automobile.
Why such a decision? The answer lies largely in the rapid development of the automobile market. The figures are convincing: in 2023, 18% of cars sold worldwide were electric, or 14 million units. Even more striking, 95% of these vehicles were produced in China, Europe and the United States, leaving Japan far behind.
A merger to survive the electrical storm
This potential alliance is not limited to Honda and Nissan. According to the sources of NikkeiMitsubishi Motors could also join this new automobile giant. A consolidation which demonstrates the urgency of the situation for Japanese manufacturers, once undisputed leaders in automotive innovation.
The memorandum of understanding, the first step in this historic rapprochement, should be signed soon. The objective? Create a joint holding company that would allow resources and technologies to be pooled, particularly in the crucial area of electric vehicles.
This potential merger naturally raises questions about the future of the Renault-Nissan-Mitsubishi Alliance. But the situation is simpler than it seems: since the restructuring of the Alliance in 2023, where Renault reduced its stake in Nissan to 36% (Nissan owns 14% of Renault), each manufacturer has a autonomy in its strategic decisions.
The Alliance continues to exist, but in a more flexible form which allows each member to develop its own strategic partnerships.
But according to BloombergRenault should still give its agreement. According to the American media, the French group would be open to opening these discussions which could lead to an agreement. But we will have to wait for the end of the discussions, since Renault will obviously monitor its interests.
Late on electrification
The delay taken by Japanese manufacturers in the race for electrification is a real challenge. While Tesla and BYD invested massively in this technology from the beginning of the 2000s, Honda and Nissan have long focused on hybrid engines, a technology that they mastered perfectly, but which today shows its limits compared to pure electric .
To go further
10 functions of Chinese cars that amazed us
This merger would therefore represent an attempt at accelerated catch-up. By combining their expertise and research and development capabilities, Honda and Nissan hope to be able to compete with the new giants in the sector. But the challenge is significant: Tesla and the Chinese manufacturers are already several years ahead, both in terms of technology and production capacity.
To go further
China is crushing the rest of the world in the field of electric cars, proof with these impressive figures
Our Twitch show SURVOLTÉSit’s every other Wednesday from 5 p.m. to 7 p.m.: meet us to talk about electric cars or electric bikes, around debates, interviews, analyzes and games!
