Mitsubishi Motors will sit out a possible merger between Honda and Nissan, according to media reports. The company has not confirmed or denied the news, merely saying that the news “was not released by Mitsubishi.”
Japan’s Yomiuri newspaper had the first report, later seconded by Reuters.
Honda Secure, Nissan Troubled, Mitsubishi Small
Merger rumors began in December, as reports emerged that Nissan’s 2024 sales results would further sink the company into trouble. Honda and Nissan signed a memorandum of understanding late last month, making the talks public.
Nissan has suffered a sharp sales drop in the wake of the COVID-19 pandemic and has not released a product that has captured the public’s imagination. Flagging sales numbers led two activist investor groups and electronics giant Foxconn to make rescue bids.
Nissan turned, instead, to industry stalwart Honda. Honda executives told Kelley Blue Book this month that “nothing has been decided,” and a merger is not guaranteed. However, the company wants a cost-sharing partner to help it firm up operations as it fights increasing Chinese competition.
Mitsubishi reportedly has the option to join the pact or stay out.
Mitsubishi’s presence in the automotive market is comparatively small – the company sold just 109,843 vehicles in North America last year. Honda sold nearly four times that many CR-V compact SUVs alone. Nissan, with its struggles, sold almost twice as many Rogue SUVs as Mitsubishi sold vehicles.
But Mitsubishi Just Had a Successful Year
But the tiny company had 25.8% sales growth in North America in 2024, its best result since 2019.
Industry publication Automotive News explains, “Going it alone presents potentially huge challenges for Mitsubishi in an era when global carmakers are joining forces to deliver big volume and share development costs.”
However, a small lineup and a small dealership network mainly confined to the coasts also leave the company less exposed to potential cuts and the need for rescue.
At a meeting with dealers last week, Automotive News reports, Mitsubishi revealed plans to offer “a small crossover-coupe-styled” electric vehicle next year.