Honda Nissan Merger
Honda Nissan Merger: The partnership between Honda and Nissan Motor Company may end now. This decision has been taken by both the companies. If this partnership had happened, it could have been included in the category of the fourth largest car manufacturer in the world.
Let us tell you that Nissan is a Japanese automobile company which was ready to merge with Honda, which would have benefited both the companies. While Nissan is struggling with the problems of its old model and is moving towards change, if it had merged with Honda, it could have emerged as a big company, although the alliance of both will continue for electric vehicles.
Nissan would have benefited from this
Nissan would have benefited the most from the Honda Nissan Merger because Nissan is currently grappling with the economic downturn and problems of old model and leadership. Nissan’s maximum sales are in the US and China but last year the company did not make any profit, due to which employees are also being laid off in the company.
Nissan may cut jobs
After the completion of Honda Nissan Merger, it can now lay off employees in its company, Nissan had announced last year in November 2024 that the company will lay off 9000 employees. The demand for EVs is growing rapidly in the US and China, but Nissan has lagged behind in both these regions, now the company will lay off employees and reduce its production capacity by a fifth without closing the factory.
There will be challenges for Honda
After the announcement of Honda Nissan Merger, if this alliance had happened then it would have become the fourth largest company in India, and Nissan would have directly benefited from it, although Honda’s position was stronger than Nissan but still Honda will have to face increasing competition in the global auto industry where Chinese companies like BYD have captured the market, in such a situation Honda will have to face this competition strongly.
Reason for ending the partnership
The decision to end the Honda Nissan Merger was taken by Nissan and Honda in a meeting held on Thursday, February 13, after which it came to light that the companies will not continue their partnership but the partnership for electric vehicles will continue.
If this merger had happened, it would have been the world’s largest automobile company with a value of Rs 6000 crores. But there was no consensus between the two, the main reason for which was that Honda talked about making Nissan its subsidiary, for which Nissan was not ready. Now the company will continue its partnership for electric vehicles. Now after the end of this partnership, Nissan is preparing for talks with another company.
