Sources revealed on Friday that Mitsubishi Motors, a junior partner of Nissan and Honda, is considering not joining a planned merger between the two Japanese automakers. While Mitsubishi will maintain its cooperative ties with both companies, it plans to remain independent and listed, according to insiders who spoke on condition of anonymity.
The merger between Nissan and Honda, announced last year, aims to create the world’s third-largest auto group with an annual output of 7.4 million vehicles. However, Mitsubishi’s relatively small size reportedly raises concerns about its ability to influence management decisions within the proposed joint holding company.
Market Reactions
Following the reports, Mitsubishi shares dropped 3.9% by midday Friday, after an earlier plunge of more than 6%. Nissan and Honda shares also fell slightly, with Nissan down 0.7% and Honda edging 0.1% lower.
In response to the speculation, Mitsubishi stated that media reports were not based on official company announcements and that it was still evaluating various possibilities.
The merger plan includes a timeline to finalize discussions by June 2025 and establish a joint holding company by August 2026, with the delisting of Nissan and Honda shares. For now, Mitsubishi plans to focus on strengthening its market share in Southeast Asia, according to the Yomiuri report.
