If you are looking to shop around for a Japanese car, this news probably has your ears burning! There are big happenings with the automakers in the Land of the Rising Sun, and we’ve got the details.
Here are Five Fast Facts on the Honda/Nissan merger:
- 🇯🇵 Japanese Shrinkage - Japanese automakers have been struggling a bit lately, losing market share, particularly within the EV space. Nissan has been especially troubled since its former chairman was arrested for fraud and company assets in 2018. Honda made $6 billion profit last year, but wants to scale up.
- 🤝 The Headline - Honda and Nissan (including their little brothers Mitsubishi and Renault) have agreed to merge, creating a $50 billion beast in the automaker space. Combined, the group will make over 8 million cars per year.
- ⚡ Synergies - It does make some sense, given that Honda, Nissan, and Mitsubishi have already been sharing technology, components, and research to give all of them an advantage.
- 🥉 For The Win…Actually The Bronze - After putting the merger together, they will be the third biggest automaker in the world. Toyota is the biggest in terms of cars sold (11.5 million) and Volkswagen is biggest in overall revenue ($318 billion).
- 👀 The Path Forward - The merger should be finalized in June 2025 and completed in August, and a newly formed holding company will perform the integrations. The Japanese government is in favor, so there shouldn’t be any legal roadblocks, either. Nissan shares skyrocketed 30% after the news came out.
🔥Bottom line: It’s not a done deal yet, but it seems very likely. This could result in more low-priced smaller cars, especially in the electric space. So, if you like Japanese cars, this could be a great thing for your purchasing dollars over the next couple of years!
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