Mitsubishi Sceptical About Merger with Honda-Nissan – report

A planner merger between Nissan, Honda – with Mitsubishi as a partner – may not proceed as planned.

Sources within Mitsubishi told news outlet Reuters the company is considering exiting the planned merger over concerns its voice will not be heard.

The Mitsubishi insider said, given the company’s smaller size compared to Nissan and Honda, the carmaker was sceptical about its ability to influence the direction of the partnership.

It’s yet another bump in the road for the proposed merger, and comes just days after Honda said Nissan needs to triple its profit for the partnership to be successful.

It’s estimated Nissan would need growth of approximately 200 per cent in the next year – a far cry from the typical 10 to 25 per cent growth rate.

If the merger between Honda and Nissan did proceed, it would create the world’s third-largest automotive group.

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Some believe the merger is the result of a push by the Japanese Government to keep control of Nissan within its borders, following the tumultuous Renault-Nissan-Mitsubishi Alliance – and rumours of a potential acquisition of Nissan by Foxconn, the Taiwanese company that makes the Apple iPhone and Foxtron cars.

Reports from Japanese media claim Mitsubishi is considering maintaining its current structure, focusing on markets within Southeast Asia – where the company has been dominant in recent years – rather than being a minor partner in the merger.