The Japanese authorities insist on the merger of Nissan and Honda

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The Japanese authorities insist on the merger of Nissan and Honda

The government of Japan took the initiative on the merger of two major companies – Nissan and Honda. The reason was the growing interest in unmanned vehicles and the concern of the authorities the future of the automakers.

Competition tougher in connection with the growing demand for unmanned vehicles, and uncertainty about the future of the automotive sector in the country, prompting Japanese authorities to the idea to push Nissan and Honda to the merger talks.

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An additional reason for concern was the difficult situation in the Nissan after the arrest of the former head of the company Carlos Ghosn and the complication of relations with the Alliance partners Renault. We will remind, in the autumn of 2018 Gon was arrested in Japan on charges of fraud, but in December 2019 he managed to escape to Lebanon.

The idea of a merger is not like any Nissan or Honda. Representatives of the companies talked about a number of obstacles to this. The fundamental differences in the design of the cars make it impossible to use the common parts during Assembly. In addition, companies have fundamentally different business models. Honda gets more profit from motorcycles than from cars, and is the world’s largest manufacturer of engines including for private planes, lawn mowers and boats. Finally, Nissan is still aimed at the development of the existing Alliance with Renault

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