Honda and Nissan to Merge?

There not dumping Nissan Shares. There buying there own shares back. Its in the exact link you posted clear as day.

"The sale equates to 10.02 percent of existing non-treasury shares and will reduce Nissan's current stake in Mitsubishi from 34.07 percent to 24.05 percent holding"

Actually no one wants to dump there Nissan shares. Nissan / Japanese government is to a degree forcing Renault to sell theirs, which is why there looking for another investor.
ok so I wrote that incorrectly.. but it does show Mitsubishi's desire to reduce Nissan's influence on them in their alliance! It still shows Mitsu is strengthening their own position and limiting their exposure to Nissan.
 
ok so I wrote that incorrectly.. but it does show Mitsubishi's desire to reduce Nissan's influence on them in their alliance! It still shows Mitsu is strengthening their own position and limiting their exposure to Nissan.
OK, can you point me to anything that actually says that?

The Renault / Nissan / Mits alliance had each company buying each others shares to "strengthen" the alliance.

That Alliance has fallen apart - driven mostly by the Japanese investors, and there all supposed to be divesting of each other. Mitsubuishi motors is a private company. Of course they don't want others having a vote in what they do. It also increases the dividend / company value for other shareholders - if they retire the shares. Its what any proper company would want.

It could also mean that they don't want whomever merges with Nissan - ie maybe Honda - to own their shares 🤷‍♂️

I suppose Apple and Nvidia buying there shares back at market means something ominous also?
 
ok so I wrote that incorrectly.. but it does show Mitsubishi's desire to reduce Nissan's influence on them in their alliance! It still shows Mitsu is strengthening their own position and limiting their exposure to Nissan.

Mitsubishi moved their US HQ to the Nashville area, following Nissan there. I doubt there will be a complete separation.
 
Are they going to call themselves Honsan or Nissda?
What will happen to the Renault-Nissan-Mitsubishi Alliance?
Then there is the fact that Nissan has been cavorting with Mercedes and Daimler Truck.
Daimler own Detroit Diesel, Freightliner, and Thomas Trucks.
 
Last edited:
Nissan's really moved away what made them so popular over the last 20 years. The subprime auto market. Chrysler capitalized on it for a while too and it worked okay for them.

Altimas are nice cars. I'd say they are on par with any Camry or Accord out there. I don't believe the hype behind the CVT stuff any more ;as long as they are properly maintained they will last.

Honda could use a "real" truck, though. Frontier is the best midsize on the market, IMO. Benz sells a version of it, Honda would be smart to replace the current Ridgeline with a J35XX powered Frontier with the Benz or a ZF 9 speed transmission.

Nissan is hurting but I think they're in a better spot to handle inflation going forward if they can get themselves down market back to what they were. Honda is going to be the struggling one soon ... I think in 5-10 years they are going to be a company without a purpose. Or less of a purpose than they have now.

Mitsubishi probably doesn't care. They're a giant industrial conglomerate who dabbles with cars.
 
Mitsubishi probably doesn't care. They're a giant industrial conglomerate who dabbles with cars.
The Mitsubishi conglomerate is vast with tentacles in every industry. Besides making heavy industry products, airplanes, construction equipment, nuclear reactors, etc, they even own Pentel. That's a lot of pencils and pens! Mitsubishi also makes food stuffs, cosmetics, and my personal favorite, bioceuticals.
 
Are they going to call themselves Honsan or Nissda?
What will happen to the Renault-Nissan-Mitsubishi Alliance?
Then there is the fact that Nissan has been cavorting with Mercedes and Daimler Truck.
Daimler own Detroit Diesel, Freightliner, and Thomas Trucks.
What I read most recently - CNBC - all speculation, it may also include Mitsubishi to some level - and the point seemingly is to create economies of scale so they can compete in the EV space, presumably against the Chinese.

Apparently FoxConn wanted in originally. My guess is the JCB doesn't like that idea.

https://www.cnbc.com/2024/12/18/wha...-merger-could-mean-for-the-auto-industry.html
 
I don't know 🤔
Honda's lost their way for quite some time now, Nissan people would probably only make it worse 😭

1000002427.webp
 
Nissan's really moved away what made them so popular over the last 20 years. The subprime auto market. Chrysler capitalized on it for a while too and it worked okay for them.
This has been a failed long term sales tactic and business practice for every auto manufacturer that has gone after this market. The reason that Nissan has recently attempted to move away from this market is because they now know it. The subprime market is fraught with peril. People who don't pay their bills don't pay their bills and the vast majority of them will never pay-off a car note. Whomever merges with Nissan will have to deal with the contingent liability caused by Nissan's heavy participation in the subprime market.
 
Last edited:
I hope we're not in the throws of conglomerate car mergers again. Didn't Nash, Hudson, Desoto merge, to become AMC then to become Jeep Eagle?
Desoto was part of Chrysler when they discontinued the brand. Hudson, Nash became AMC. Kaiser also bought Willys before
AMC had owned them. The moral here is, that the auto industry has been through lots of consolidation previously........with many brands coming and going.
 
This has been a failed long term sales tactic and business practice for every auto manufacturer that has gone after this market. The reason that Nissan has recently attempted to move away from this market is because they now know it. The subprime market is fraught with peril. People who don't pay their bills don't pay their bills and the vast majority of them will never pay-off a car note. Whomever merges with Nissan will have to deal with the contingent liability caused by Nissan's heavy participation in the subprime market.
The President of our multi-billion $$ SEMI company used to tell me, "If ya swim with the bottom fish ya gotta eat a lotta fish ..."
He hated the low end of the business and refused to deal with those companies unless it was cash up front, which they didn't have.
 
Nissan's really moved away what made them so popular over the last 20 years. The subprime auto market. Chrysler capitalized on it for a while too and it worked okay for them.

Altimas are nice cars. I'd say they are on par with any Camry or Accord out there. I don't believe the hype behind the CVT stuff any more ;as long as they are properly maintained they will last.

Honda could use a "real" truck, though. Frontier is the best midsize on the market, IMO. Benz sells a version of it, Honda would be smart to replace the current Ridgeline with a J35XX powered Frontier with the Benz or a ZF 9 speed transmission.

Nissan is hurting but I think they're in a better spot to handle inflation going forward if they can get themselves down market back to what they were. Honda is going to be the struggling one soon ... I think in 5-10 years they are going to be a company without a purpose. Or less of a purpose than they have now.

Mitsubishi probably doesn't care. They're a giant industrial conglomerate who dabbles with cars.
You bring up a huge issue I missed.

Honda and Toyota on a macro basis steer clear and don't lend to sub prime. The results of not lending to sub prime on a macro basis is higher resale values for Hondas and Toyotas.

For the past decade, Nissan did sell to sub prime on. Macro basis. Selling to sub prime results in lower resale values, as some of these sub prime vehicles hit the repo process, and other intangibles.

Honda may have a risk to resale values if they merge/aquire Nissan.

And of note, published repossession statistics are worthless in many cases because it is simply a number count, not a mathematical model that divides number of vehicles sold against number of repossessions.
 
Last edited:
You bring up a huge issue I missed.

Honda and Toyota on a macro basis steer clear and don't lend to sub prime. The results of not lending to sub prime on a macro basis is higher resale values for Hondas and Toyotas.

For the past decade, Nissan did sell to sub prime on. Macro basis. Selling to sub prime results in lower resale values, as some of these sub prime vehicles hit the repo process, and other intangibles.

Honda may have a risk to resale values if they merge/aquire Nissan.

And of note, published repossession statistics are worthless in many cases because it is simply a number count, not a mathematical model that divides number of vehicles sold against number of repossessions.
Very likely true, but this is a USA issue. The rest of the world - for the most part - doesn't do sub-prime or its a very small portion of the lending pool.
 
  • Like
Reactions: GON
Very likely true, but this is a USA issue. The rest of the world - for the most part - doesn't do sub-prime or its a very small portion of the lending pool.
Nissan seems to be highly regarded elsewhere than the US. At least in countries where Japanese vehicles are the most popular.
I don't think Nissan would still be in the US market if it wasn't for the subprime lending / leasing they did. I have to imagine , fleet sales aside, the US market is more expensive to them than other markets.

We have specific US models that aren't sold in other markets. I'm sure platform sharing helps some to bring the costs down but I imagine the US market isn't their cheapest to sell in.
 
If they do agree to merge or otherwise cooperate, the Hyundai/Kia model wouldn’t be a bad one to follow. Shared platforms and technology but different styles, dealerships, markets, pricing, etc., but very big wall between brands in perception.
 
Back
Top Bottom