Nissan-Honda merger: Almost but not quite

Updated Sep 29, 2020 | Same topic: Automotive Industry Updates

Ever wondered what a fourth alliance partner for Nissan would have been like? 

Mergers are not unheard of in the automotive industry, and a Nissan-Honda union would have been the latest coalition in an era where carmakers are consolidating their resources and clout to ensure their survival. But as it turns out, this combination of forces would fizzle out even before it left the drawing board. 

Two Civics

It would have been the perfect opportunity to see a Honda Civic Type R in electric guise

The Financial Times reports that sources within the Japanese government attempted to bring together Nissan and Honda early this year, stemming from an idea hatched in end-2019 to create a national champion. The proposal was met with opposition from both sides until it was altogether forgotten in the midst of the COVID-19 pandemic. Officials from both Honda and Nissan as well as Prime Minister Shinzo Abe’s office have declined to comment. 

Carlos Ghosn

The arrest of former Nissan boss Carlos Ghosn was a factor in proposing the merger

Sources familiar with the matter cited a number of reasons behind the plan. Japan’s once-mighty automotive sector has been losing ground to developments in autonomous vehicle technology. The 2018 arrest of former Nissan CEO Carlos Ghosn sparked fears that the carmaker will be exposed amidst a reportedly shaky alliance with French marque Renault and fellow Japanese company Mitsubishi. And as the only Japanese automaker without a tie-up, Honda’s future has been cast in doubt.

>>> Related: Complete guide to the Honda Philippines' local lineup

Nissan HQ

Nissan wants to concentrate on strengthening its present alliance with Renault and Mitsubishi

However, Honda balked at Nissan’s complex capital structure with Renault. Nissan was also not in favor, preferring to focus its energies towards strengthening its existing alliance through a four-year restructuring plan to streamline its global production and model lineup. Both companies are planning separate offerings for the foreseeable future, with Nissan introducing 12 models in 18 months and Honda unleashing the new Civic, Accord, Ridgeline pickup, and HR-V through 2022. 

Honda CB1000R

Honda's motorcycle arm actually earns more money than its automotive division

>>> Related: Complete guide to the Nissan Philippines' local lineup

The biggest challenge to the proposed union is Honda’s unique engineering design, making it difficult to share common parts and platforms with Nissan and the rest of the alliance. This means that a potential merger is not likely to result in cost savings for everyone concerned. Honda also uses a different business model and derives a greater chunk of its profits from manufacturing motorcycles, private jets, lawnmowers, and marine engines.

In terms of alternative propulsion, Nissan is making inroads as far as electric vehicles are concerned, while Honda has followed Toyota with investments into hydrogen-powered cars.

Check out Philkotse.com for more auto industry updates. 

Know more about Honda

Honda

Currently, Honda is providing 11 new car models in the Philippines with Honda car prices starting from ₱601,000 to ₱3.21 Million. Some of the most popular Honda Philippines models are Honda Civic, Honda City, Honda Jazz, Honda Accord, Honda CRV, Honda BRV, and Honda Odyssey. With Philkotse.com refer to the price list and promotions in the table below.

Joseph Paolo Estabillo

Joseph Paolo Estabillo

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Joseph holds a degree in Journalism from the University of the Philippines Diliman and has been writing professionally since 1999. He has written episodes for CNN Philippines' motoring show Drive, and has worked on corporate projects for MG Philippines and Pilipinas Shell. Aside from being Philkotse.com’s Content Lead, he also writes content for numerous car dealerships in the U.S., spanning multiple brands such as Alfa Romeo, Chrysler, Dodge, Jeep, and Maserati, among others.

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