Tokyo, Japan:
Honda’s actions emerged on Wednesday when the Japanese media said the car manufacturer had proposed to turn their rival into Nissan difficulties into a subsidiary, and some reports said that the measure could mean the end of their fusion conversations. The companies agreed in December to launch discussions on the union forces to create the third largest car manufacturer in the world, seen as an attempt to catch up with Tesla and the companies of Chinese electric vehicles.
The Honda CEO insisted at that time that it was not a rescue for Nissan, which last year announced thousands of employment cuts after informing a 93 percent drop in the net earnings of the first half.
The Japanese public broadcaster NHK and other media reported on Tuesday that Honda was offering to acquire Nissan actions and turn it into a subsidiary, instead of the previous plan to integrate under a new holding company.
But this proposal is expected to face a fierce opposition from Nissan for concerns about its autonomy, according to reports.
Honda’s shares jumped more than four percent in Wednesday morning trade. Nissan also increased more than seven percent, but reduced the profits and rose 3.3 percent before the break.
A Honda spokeswoman told AFP that there had not been an official announcement and refused to make more comments.
Nissan said that the fusion discussions were “in progress”, and added that “our goal is to finish our address in mid -February and we will announce it at that time.”
The Asahi newspaper said that both companies would soon hold separate meetings from the Board to discuss issues, including the possibility of canceling conversations.
Yomiuri’s diary cited a Nissan without a name by saying that the merger was now “almost impossible”, with difficulties in satisfying the shareholders on both sides.
The mediocre expense of consumers and the hard competition in several markets are hindering the lives of many car manufacturers.
Businesses have been especially difficult for foreign brands in China, where electric vehicle manufacturers such as ByD are leading the way demand grows for less polluting vehicles.
Honda and Nissan are number two and three automobile manufacturers in Japan after Toyota.
They already agreed last year to explore an association in the software and the components of EV among other technologies, an initiative attached by Mitsubishi Motors in August.
But the smallest automobile manufacturer said this week that he will make a final decision on whether he will join Honda-Nissan fusion conversations in mid-February or later.
(Except for the headline, this story has not been edited by NDTV staff and is published from a union feed).
By
