在面临日益激烈的竞争之际，本田和日产当然需要帮助。合并后的成本削减将提振这三家汽车制造商的利润率。此外，如果当选美国总统的特朗普兑现他对进口商品征收关税的威胁，那么合并后的实体获得更多收入的前景将更具吸引力。However, the merger might not solve everything. As Stellantis's current plight shows, a simple merger won't make a great car manufacturer.
The Zhitong Finance App learned that, according to reports, Japan's two major automobile manufacturers, Honda Motor (HMC.US) and Nissan (NSANY.US), will begin merger negotiations, and may also join Mitsubishi Motors to form an alliance — Nissan is currently the largest shareholder of Mitsubishi Motors and holds 24% of the shares.
Once the merger is completed, it will be the largest merger in the global automotive industry since Fiat Chrysler and the French PSA Group merged to form Stellantis (STLA.US), which will create the world's third-largest automobile group.
In the face of increasing competition, Honda and Nissan certainly need help. Cost cuts after the merger will boost the three automakers' profit margins. Furthermore, if US President-elect Trump delivers on his threat of imposing tariffs on imported goods, the prospects for the merged entity to earn more revenue will be even more attractive.
However, the merger might not solve everything. As Stellantis's current plight shows, a simple merger won't make a great car manufacturer. Stellantis is currently struggling to cope with declining sales volume and declining profit margins, which are mainly due to its high prices and unattractive models in the US market. Stellantis board differences over how to resolve the issue prompted CEO Carlos Tavares to resign this month.
Not long ago, Nissan was revealed to be on the brink of bankruptcy. At least two Nissan executives said Nissan is looking for new investors everywhere. The company's executive said, “With the current level of cash flow, Nissan may only survive for 12-14 months, and introducing new investments is imminent.” Last month, the company said its half-year net profit fell by more than 90% compared to the same period last year, and lowered its annual operating profit forecast by about 70%.
At the same time, Honda's situation is not much better. In the Chinese market, like Nissan, both profits and sales declined. In the first 11 months of 2024, Honda's sales volume in China fell 30.7% year over year. Not long ago, Honda also decided to cut global production capacity by about 0.5 million vehicles, accounting for about 10% of its total production capacity. Among them, production capacity in the Chinese market was reduced for the first time.
A well-executed merger could buy time for Honda and Nissan, not only cutting expenses, but also boosting their less-than-good product portfolio, particularly in electric and hybrid vehicles. And Stellantis's experience shows that if executives don't focus on producing the cars that customers want to buy at a price that satisfies shareholders, any alliance may once again be off track.