Mitsubishi Motors Considers Withdrawing from Merger Talks with Nissan and Honda – Report

Credit: Mitsubishi

Mitsubishi Motors  is reportedly weighing the option of opting out of the planned merger between Nissan Motor and Honda Motor, according to sources familiar with the matter. The automaker plans to remain independent, continuing its cooperative relationships with both Nissan and Honda, as discussions around the merger framework evolve.

The potential withdrawal of Mitsubishi from the merger talks caused a significant impact on its stock, which fell over 6% in early trading on Friday. Nissan’s shares also experienced a decline of 1.6%. Mitsubishi is expected to make a final decision on the matter this month, as the merger framework continues to take shape, according to the report.

See also: Honda and Nissan Consider Shared Production and Potential Merger, Kyodo Reports

Credit: Honda

The proposed merger, announced in December by Nissan and Honda, seeks to create a joint holding company, aiming to become the world’s third-largest automaker, producing 7.4 million vehicles annually. The companies plan to complete discussions by June 2025, with the new structure set to be implemented by August 2026.

Mitsubishi Motors, in response to media speculation, issued a statement confirming its stance on the integration, stating that no official decisions have been made yet. The company added that it is exploring various options as it navigates its future path.

See also: Nissan Delays EV Production at Ohio Plant, Cancels Smaller Electric SUV Plans

Credit: Nissan

Reports from the Yomiuri Shimbun indicated that Mitsubishi’s concerns are related to its ability to influence decision-making within the proposed holding company, given its relatively smaller size in comparison to Nissan and Honda. Mitsubishi is also focused on expanding its presence in Southeast Asia, which is seen as a key growth area, while prioritizing its independent structure in the near future.

Source: Reuters

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