Nissan Motor Co, Honda Motor Co, and Mitsubishi Motors Corporation have signed an MoU to explore the possibility of Mitsubishi’s participation, involvement and synergy sharing in the proposed business integration between Nissan and Honda.

 

Nissan, Honda and Mitsubishi Motors have reached a basic agreement to proceed with discussions based on the framework established in the MoU signed by Nissan and Honda on August 1 regarding the commencement of a strategic partnership focused on intelligence and electrification. 

 

Mitsubishi Motors has been participating in this framework, and the three companies have been proceeding with discussions.

 

Achieving synergies

Following the agreement between Nissan and Honda to start consideration toward a business integration through the establishment of a joint holding company amid the dramatic changes in the environment surrounding both companies and the automotive industry, the three companies have agreed to explore the possibility of achieving synergies at an increased level through Mitsubishi Motors’ participation or involvement in the business integration. 

 

Mitsubishi Motors aims to reach its conclusion by the end of January 2025 on the participation or involvement in the business integration between Nissan and Honda.

 

Marking the announcement, Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida, said: “Honda and Nissan have begun considering a business integration, and will study the creation of significant synergies between the two companies in a wide range of fields. It is significant that Nissan's partner, Mitsubishi Motors, is also involved in these discussions. We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base.”

 

Creating new value

Honda Director and Representative Executive Officer Toshihiro Mibe said: "At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors' participation in the business integration discussions of Nissan and Honda will lead to further social change, and that we will be able to become a leading company in creating new value in mobility through business integration. Nissan and Honda will start the discussion with an aim to clarify the possibility of business integration by around the end of January in line with the consideration of Mitsubishi Motors."

 

Mitsubishi Motors Director, Representative Executive Officer, and President and CEO Takao Kato, said: “In an era of change in the automotive industry, the study between Nissan and Honda about a business integration will accelerate synergy maximisation effects, bringing high value also to the collaborative businesses with Mitsubishi Motors. In order to realise synergies and to make the best use of each company's strengths, we will also study the best form of cooperation.”--TradeArabia News Service