this is how the third automotive power in the world will be made up

Stellantis is very famous as an automotive group, but an even more ambitious similar one could be born in Japan.

The global automotive industry is going through a period of great transformations and unprecedented challenges. Recently, news spread of a possible merger between two Japanese giants which could represent a crucial moment in this scenario. Some even refer to this potential automotive group as the “Japanese Stellantis”.

As reported by Reutersthe two historic brands are negotiating a collaboration that could culminate in a merger, creating a conglomerate worth approximately 54 billion dollars and positioning itself as the third largest automotive group in the worldimmediately after Toyota and Volkswagen.

The reasons for a merger

The brands in question are Honda and Nissan. The push towards this potential merger is the result of external and internal pressures who are restructuring the Japanese auto industry. On the one hand, the growing competitiveness of electric car manufacturers, such as Tesla e BYDhas put traditional companies in difficulty, forcing them to rethink their strategies. Tesla, in particular, has implemented aggressive pricing policies that have altered market dynamics, making it increasingly difficult for Japanese manufacturers to maintain their leading status.

On the other hand, Honda and Nissan also face internal challenges. Nissan has started a savings plan since 2.6 billion dollarspredicting the reduction of 9,000 jobs due to a sharp decline in profits. The merger would therefore represent not only an opportunity for growth, but also a necessity to address current and future difficulties.

The merger between Honda and Nissan would not only concern the economic aspect, but also the technological sphere. Both companies have already started collaborations in the food sector electric vehiclesan ever-expanding field that is fundamental to the future of the automobile. The integration of the technologies of both companies would allow us to accelerate the development of more competitive electric vehicles, capable of meeting the challenges imposed by new entrants in the market.

Furthermore, the growing interest in sustainability and global green policies make the transition to electric not only a commercial choice, but also a social responsibility. Currently, demand for low-emission vehicles is on the rise, and the consolidation between Honda and Nissan could represent a significant step towards leadership in this crucial sector.

Merger speculation has already had significant repercussions on financial markets. Here are some key facts:

• Nissan shares saw an increase of 24%.
• Honda shares fell by 3%.
• Mitsubishi Motors, in which Nissan holds a stake of 24%saw an increase in profits.

This contrast highlights the different market perception regarding the future prospects of the two companies. However, integrating two very different corporate cultures presents a significant challenge. Honda is known for its innovative approach, while Nissan has faced management crises in recent years. The merger could therefore generate internal tensions, but also prove to be an opportunity to renew and integrate the best practices of both companies.