Nissan’s mooted merger with Honda may be best answer to industry’s EV problem

Nissan’s mooted merger with Honda may be best answer to industry’s EV problem

Nissan, Automotive industry, Business, Honda, Electric, hybrid and low-emission cars, Renault, Mergers and acquisitions Business | The Guardian

​Potential deal sounds more like a credible plan for crisis-hit carmaker as its troubled alliance with Renault hits a dead end Until recently, the plan at crisis-hit Nissan was to muddle through somehow. About 9,000 job losses were announced last month out of a global workforce of 130,000. Production capacity was cut by 20%. There was some muttering about seeking a new anchor investor because the troubled 25-year alliance with Renault of France was heading up a dead end. None of it appeared to be a sufficiently radical response to a self-described “severe situation” and a plunge in Nissan’s stock market value to a clapped-out $8bn (£6.3bn).It seems its management now agrees. The new game is talks with Honda on a full-blown merger, which should probably be viewed as a takeover given that the would-be partner is worth four times as much. Either way, the potential deal sounds more like a credible plan: full consolidation creates the possibility of far deeper cost-cuts at what would be the world’s third largest car company producing 8m vehicles a year if Mitsubishi (where Nissan is a large shareholder) is also thrown into the mix. Continue reading… 

Potential deal sounds more like a credible plan for crisis-hit carmaker as its troubled alliance with Renault hits a dead end

Until recently, the plan at crisis-hit Nissan was to muddle through somehow. About 9,000 job losses were announced last month out of a global workforce of 130,000. Production capacity was cut by 20%. There was some muttering about seeking a new anchor investor because the troubled 25-year alliance with Renault of France was heading up a dead end. None of it appeared to be a sufficiently radical response to a self-described “severe situation” and a plunge in Nissan’s stock market value to a clapped-out $8bn (£6.3bn).

It seems its management now agrees. The new game is talks with Honda on a full-blown merger, which should probably be viewed as a takeover given that the would-be partner is worth four times as much. Either way, the potential deal sounds more like a credible plan: full consolidation creates the possibility of far deeper cost-cuts at what would be the world’s third largest car company producing 8m vehicles a year if Mitsubishi (where Nissan is a large shareholder) is also thrown into the mix.

Continue reading… 

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