Mitsubishi Motors Corp. plans to stay out of the proposed merger between Honda Motor Co. and Nissan Motor Co., choosing to maintain its stock market listing and pursue more flexible business partnerships. The decision comes as Honda and Nissan explore creating a joint holding company.
Mitsubishi’s market value of about ¥700 billion ($4.7 billion) falls well below Honda’s ¥7.9 trillion and Nissan’s ¥1.6 trillion, raising concerns about its influence in any combined entity. The company’s President Takao Kato indicated this month that a merger wasn’t the only path forward, describing it as just one of several options.
While skipping the merger talks, Mitsubishi aims to strengthen cooperation with both automakers on vehicle supply and technology development, particularly in software-defined vehicles and autonomous driving. The company sees these partnerships as crucial given the high development costs that even larger automakers struggle to handle independently.
Nissan currently holds a 27% stake in Mitsubishi, which became its affiliate following a fuel economy data scandal in 2016. Major Mitsubishi shareholders, including Mitsubishi Corp. with about 20% ownership, have expressed caution about the merger, citing concerns over Nissan’s ongoing restructuring efforts.
A Honda-Nissan combination would create the world’s third-largest auto group with 7.35 million vehicles in global sales, trailing only Toyota Motor Corp. and Volkswagen AG.
