Amitaabh Malhotra’s Post

Japan's once almighty auto industry crumbles (and non-auto as well). Remember the 80's and 90's when Japan seemed an unstoppable industrial force, both in innovation, quality and sheer growth? No more. The country's second and third automakers are in merger talks, for the simple reason that Nissan is on the brink of bankruptcy and Honda, despite its engineering might, is really struggling with the transition to #zeroemissions and Software-Defined Vehicles (#SDV). It's had to rely on General Motors, using GM's Ultium platform, for it's best-selling EV in America, the Prologue, the Honda 'e' was a sales flop and so on. Nissan, on the other hand, forgot to hybridize its cars just when customers were flocking to them (hence Toyota being the only Japanese OEM in decent financial shape) and is now sitting on mountains of unsold carbon-emitting vehicles. Cash-flow is dire. The lesson? If you see China going as a block in one direction (renewables, semiconductors, batteries, electric vehicles...), follow suit or be ready to have your cheese moved, as the famous book by Spencer Johnson foretold. That, or shift/reinvent yourself in another segment or sector (IBM comes to mind with PCs). #electricvehicle #automotive #consolidation #disruptivechange https://lnkd.in/djahN4ch

Japanese auto giants Honda Motor and Nissan Motor will enter talks on a merger aimed at helping them compete against Tesla and other electric vehicle makers.

Honda and Nissan are reportedly holding exploratory talks about a potential merger to help them compete against electric vehicle (EV) makers, particularly in China. In March, the two Japanese car make

Honda and Nissan are reportedly holding exploratory talks about a potential merger to help them compete against electric vehicle (EV) makers, particularly in China. In March, the two Japanese car make

Honda and Nissan are the latest in talks about a potential merger in the rapidly transforming automotive industry. This alliance may present possibilities for cost optimization, technology advancement, and market share consolidation. This is potentially an important significance for Nissan, facing recent challenges and the need for survival. However, navigating this merger won't be a smooth ride. Aligning corporate cultures, streamlining overlapping brands, and overcoming ongoing industry competition are crucial hurdles to address. Streamlining product portfolios, including potentially phasing out certain Nissan models, might be necessary. Broader trend in the auto industry: COLLABORATION IS KEY. The electric vehicles (EVs) and autonomous driving technology demands significant investments and expertise. We've witnessed this trend with Volkswagen's $5 Billion investment in Rivian's software and the formation of Stellantis through the merger of PSA and FCA. Collaborative efforts on battery technology, charging infrastructure, and even ride-sharing services are also becoming increasingly common. By 2030, the automotive landscape is set to transform drastically, with only a few major players surviving. Others will likely merge, be acquired, or exit the market. The industry's future points towards increased consolidation and cooperation. What are your thoughts on this evolving landscape? #automotive #merger #collaboration #EV #futureofmobility Read more: [Link to the WSJ article](https://lnkd.in/gtfX37fW)

Significant development in global auto with news of a likely merger between Japanese OEMs, Honda and Nissan. A few points of interest from the WSJ article: 1. Honda and Nissan exploring a merger following a downturn in Nissan’s results and struggles for both automakers in China.  A combination would allow Honda and Nissan to seek synergies in purchasing and technology development, but it would also present challenges for two companies with different cultures and partly overlapping vehicle lineups. 2. Last month, Nissan announced restructuring plans that include cutting 9,000 jobs globally and reducing its global production capacity by a fifth. It also lowered vehicle-sales forecasts for all major markets, particularly China and North America. Honda cut its annual forecasts for car sales and net profit. It posted a drop in earnings for the first half of its fiscal year owing partly to weakness in its auto business in China. 3. Analysts said the merger talks between Honda and Nissan were driven by increasing competition from such EV makers as Tesla and China’s BYD. Tesla and Chinese carmakers are also leading the way in autonomous driving and software, and automakers need to invest heavily to keep up. 4. In China, 52% of passenger cars sold in November were either full EVs or plug-in hybrids, data from the China Passenger Car Association showed. As the market rapidly shifts away from gasoline-powered cars, local brands have captured share from Japanese, German and American automakers. In the first 11 months of this year, Chinese brands accounted for 60% of China’s passenger car sales, up 8.5 percentage points from a year earlier, the car association said. 5. Honda last year sold about 4 million vehicles globally, and Nissan sold about 3.4 million, according to the companies. If their merger goes ahead, the combined company will be poised to take third place globally in car sales, behind Toyota and Volkswagen, unless it scales back production to reduce overlaps.

Japanese auto giants Honda Motor and Nissan Motor will start negotiations to merge as they face growing competition from bigger global electric vehicle makers, the Nikkei newspaper reported on Tuesday. The carmakers have increased ties in recent months as they wrestle with the changing EV landscape. Heavy competition from Tesla and local rivals in China, which is rapidly adopting EVs, and stalling demand in Europe and the U.S. have intensified the pressure traditional automakers face. Honda and Nissan, Japan's second- and third-biggest automakers, respectively, after Toyota, have been losing market share in China. That nation accounted for almost 70% of global EV sales in November, with more than 1.27 million in purchases for the month. #honda #nissan #merger #automakers #electricvehicles #evs #autobusiness

⭐ Honda and Nissan to begin merger talks ⭐ Japanese auto giants #Honda and #Nissan are in preliminary merger talks, according to media reports Wednesday, adding that a tie-up would aim to help them better compete against Tesla and Chinese electric vehicle makers Shares in Nissan soared more than 20 percent on the stories in the Nikkei, Financial Times and others, while Honda dipped more than two percent. Mitsubishi Motors -- of which Nissan the top shareholder -- gained 13 percent Japan's number two and three automakers behind Toyota had already agreed in March to explore a strategic partnership on EV The world's auto giants are increasingly prioritizing electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows https://lnkd.in/gBiWqNeK

Honda and Nissan are weighing a merger amid an intense battle to capture the future electric vehicle market, potentially building the world's largest carmaker by sales. The Japanese car giants revealed they had signed a memorandum of understanding (MOU) on a potential business integration, along with smaller Nissan alliance member Mitsubishi Motors.

Last week, news about a potential merger between Honda Motor Co. and Nissan Motor Co. reached the front page. The news comes nine months after Honda and Nissan launched a feasibility study on a strategic EV production partnership to cut costs, improve competitiveness, and share software technology development. If successful, the merger would create the world's third-largest automaker group, challenging U.S. and Chinese rivals in the EV field. Honda and Nissan, Japan's second and third-largest automakers by volume after Toyota, have confirmed the planned merger talks with the Japanese government and are aiming to conclude negotiations in June 2025. As Japan picks up the pace with $2.4 billion in support for domestic EV battery production and Japanese automakers investing heavily in EV development, will they be able to overtake the global market? #Japan #Honda #Nissan #automotive #manufacturing #SDGs #EVs