Core Viewpoint - Tesla CEO Elon Musk has downplayed reports regarding Tesla's interest in investing in Nissan's U.S. factories, following a report that a Japanese group is seeking Tesla's investment after Nissan's merger talks with Honda collapsed [1][3]. Group 1: Investment Plans - A group led by former Tesla board member Hiro Mizuno, with support from former Japanese Prime Minister Yoshihide Suga, is reportedly planning to attract Tesla as a strategic investor in Nissan [2]. - The group aims to form a "consortium of investors" with Tesla at the forefront, and Apple supplier Foxconn is expected to join as a minority investor [4]. Group 2: Market Reaction - Following the report of potential investment from Tesla, Nissan's shares surged over 12% in Tokyo trading, closing at $3.05 (JPY 459), which is nearly 9.5% higher than the previous day [5]. Group 3: Merger Talks Background - Nissan and Honda recently ended their merger discussions due to disagreements over the deal structure, with Honda proposing to make Nissan a subsidiary through a share exchange [6]. Group 4: Foxconn's Interest - Foxconn has shown interest in acquiring a stake in Nissan as part of its strategy to expand in the electric vehicle market, while emphasizing cooperation over acquisition [7].

Group 1 - The articles focus on community guidelines aimed at fostering respectful and constructive conversations among users [1][2] - Key rules include prohibiting false information, spam, and any form of discriminatory comments [2] - Users are encouraged to stay on topic and share insights while using tools to report rule violations [2]

Financial Data and Key Indicator Changes - For the first nine months of fiscal year 2024, net revenue was JPY 9.1 trillion, operating profit decreased to JPY 64 billion, and net income decreased to JPY 5.1 billion [14][70]. - Consolidated net revenue was flat at JPY 9 trillion, with a negative operating margin of 1.8% [17][73]. - Auto free cash flow year-to-date was negative JPY 506 billion, with net cash in the auto segment at JPY 1.2 trillion [17][73]. Business Line Data and Key Indicator Changes - Global retail sales decreased by less than 2% to 2.4 million units year-to-date, with a slight increase in unit sales when excluding China [15][71]. - North America saw a growth of 2.4%, offsetting declines in Japan and Europe [15][72]. - Retail sales for Q3 alone, excluding China, increased nearly 2%, particularly with a close to 10% increase in North America [16][72]. Market Data and Key Indicator Changes - The market in China remains challenging, contributing to a decline in retail sales [15][72]. - The company maintains its outlook for retail sales of 3.4 million units and global production of 3.2 million units for fiscal year 2024, despite trimming net revenue outlook by JPY 200 billion [21][78]. Company Strategy and Development Direction - The company has decided to terminate discussions for business integration with Honda due to concerns over autonomy and maximizing Nissan's potential [9][12]. - The revised sales assumption for the midterm plan is now set at 3.5 million units for fiscal year 2026, down from 4.5 million units [27][84]. - The company aims to achieve a 4% operating margin by reducing variable expenses by JPY 100 billion and fixed costs by JPY 300 billion [30][86]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive challenges in the industry but sees signs of progress with new vehicle launches contributing positively [20][77]. - The company expects to maintain or slightly increase operating profit compared to 2024 levels, despite boosting sales volume [85][86]. - Future risks include FOREX volatility, regulatory costs, and fixed costs, which could impact revenue and profit [85][86]. Other Important Information - The company plans to reduce headcount by 5,300 in fiscal year 2025 and 1,200 in fiscal year 2026 as part of its restructuring efforts [36][90]. - Global production capacity is expected to decrease by 20% from 5 million units to 4 million units by fiscal year 2026 [93][95]. - The company is focusing on launching new models, including a plug-in hybrid version of Rogue and a new energy vehicle in China [46][104]. Q&A Session Summary Question: What was the reason behind the unsuccessful business integration with Honda? - Management explained that the initial plan was to create a holding company to leverage strengths, but Honda's proposal to make Nissan a wholly-owned subsidiary raised concerns about autonomy and maximizing potential [120][124][126]. Question: What are the expected expenses related to the turnaround actions? - The CFO indicated that approximately JPY 100 billion is estimated for restructuring costs and impairments, with potential updates in the fourth quarter [130][131].

FY2024 Third Quarter Financial Results & Turnaround Progress February 13, 2025 FY2024 Q3 YTD 01 Financial Results FY2024 Outlook 02 03 Turnaround Progress = NISSAN MOTOR CORPORATION FY2024 Q3 YTD 01 Financial Results OW24 KLV MOTOR CORPORATION FY2024 Q3 YTD Summary NET REVENUE OPERATING PROFIT NET INCOME 64.0 B 9,143.2 B 5.1 B -0.3% YEAR OVER YEAR -98.4% YEAR OVER YEAR -86.6% YEAR OVER YEAR FY24 Q3 Retail Sales Results Q3 YTD Q3 (Thousand units) -1.8% -2.2% vs. FY23 819 2,441 -> 2,397 801 vs. FY23 T China - ...

Group 1 - Nissan and Honda have called off a $50 billion merger that would have formed one of the world's largest car companies [1] - The decision was made to prioritize speed of decision-making and execution of management measures in an increasingly volatile car market [1] - Both companies will continue to work within the framework of a strategic partnership moving forward [1] Group 2 - The merger talks were first announced in late December, and if completed, it would have created the world's third-largest automaker by sales [2]

Core Viewpoint - Nissan and Honda are facing challenges in their potential merger discussions, with Nissan considering backing out due to unacceptable terms proposed by Honda [1][2]. Group 1: Merger Discussions - Reports indicate that Nissan is weighing the option to abandon the memorandum of understanding with Honda [1]. - Nissan plans to finalize its direction regarding the merger discussions by mid-February [3]. - Honda stated that discussions are still ongoing but did not provide further details [4]. Group 2: Background and Objectives - In late December, Nissan and Honda announced a memorandum of understanding aimed at maintaining global competitiveness and enhancing product offerings [5]. - The potential merger could create the world's third-largest automaker, integrating management resources, knowledge, and technologies [6]. Group 3: Production and Market Capitalization - Honda produced over 3.7 million vehicles in 2024, while Nissan produced over 3.1 million [7]. - As of the latest reports, Honda's market capitalization was approximately $50.11 billion, and Nissan's was around $9.44 billion [7].

Group 1 - Honda and Nissan shares rose after reports indicated the companies were considering terminating their merger talks, with Nissan's shares increasing by 7.4% and Honda's by 4.2% [1] - The merger discussions began last December, with plans to conclude by June this year, which would have positioned them as the world's third-largest carmaker by sales [2] - Nissan's strategic partner Mitsubishi was also invited to join the merger discussions, with a decision expected from Mitsubishi in mid-February or later [2] Group 2 - Analysts suggested the merger was driven by Nissan's financial struggles and the need to restructure its alliance with Renault, with Nissan planning to cut 9,000 jobs and reduce global production capacity by 20% [3] - Nissan faced significant challenges in key markets, including the U.S. and China, with operating profits dropping by 90% and net income declining by 94% in the first half of fiscal year 2024 compared to the previous year [4] - The global auto industry is undergoing transformation due to the rise of electric vehicles, impacting traditional automakers [3]

Core Viewpoint - A merger with Honda may be Nissan's best or only chance for survival amid significant challenges in key markets and a drastic decline in profits [1] Financial Performance - Nissan's operating profits dropped by 90% and net income fell by 94% in the first half of fiscal year 2024 compared to the same period a year earlier [1] - A report indicated that Nissan has "12 or 14 months to survive," although the company described these comments as speculation [2] Strategic Actions - The company is implementing significant changes, including executive shuffles, cutting 9,000 jobs, and reducing production by approximately 20% [3] - CEO Makoto Uchida is reducing his monthly compensation by about 50%, with other executive committee members also expected to take pay cuts [3] Market Position and Strategy - Despite challenges, Nissan has strengths, such as six models priced below $30,000 in the U.S., which is advantageous given the average transaction price is close to $50,000 [4] - A potential strategy involves targeting the value niche market, focusing on affordable and reliable vehicles for first-time buyers and new families [5]

Core Viewpoint - The potential merger between Nissan and Honda could lead to significant challenges for Nissan, as it may become the "victim of cost-cutting carnage" due to a lack of complementarity between the two companies [1][8]. Group 1: Merger Details - A proposed $54 billion merger between Nissan and Honda would position the combined entity as the world's third-largest automaker by vehicle sales, surpassing Hyundai [2]. - The merger is seen as a response to the high development costs associated with electric vehicles and autonomous driving technology, indicating a trend of consolidation in the automotive industry [2]. - The merger discussions began earlier this month, with both companies confirming the start of talks for business integration [11]. Group 2: Financial Implications - Executives from both companies believe that a merger would enable them to share resources and intelligence necessary for competing in the EV market, potentially boosting long-term operating profit to 3 trillion yen ($19.1 billion) [12]. - Honda's market capitalization is approximately four times that of Nissan, which raises concerns about the balance of power in the new entity, with Honda likely nominating most board members [11]. Group 3: Strategic Challenges - Former Nissan CEO Carlos Ghosn expressed skepticism about Nissan's ability to successfully turn around its operations, suggesting that the merger indicates Nissan is in "panic mode" [4][14]. - There are uncertainties regarding how the merged entity will achieve its long-term vision, with analysts highlighting the need for effective post-merger integration [5][16]. - The success of the merger is contingent upon Nissan's ability to execute its turnaround program, as failure to do so could jeopardize the merger [16].

Core Viewpoint - Honda and Nissan are considering a merger to create the world's third-largest automaker, aiming for combined sales of $191 billion and an operating profit exceeding $19 billion [1][8]. Group 1: Merger Details - The merger would position the new entity as the third-largest auto group globally by vehicle sales, following Toyota and Volkswagen [3]. - The companies plan to finalize negotiations by June 2025 and establish a holding company by August 2026, at which point both companies' shares will be delisted [9]. - The majority of the holding company's board will be appointed by Honda [12]. Group 2: Strategic Rationale - Both automakers are facing challenges in competing with leading electric vehicle manufacturers like Tesla and BYD [2]. - Honda and Nissan are exploring ways to enhance their partnership, including collaboration on electrification and vehicle intelligence, as well as joint research on next-generation software-defined vehicle platforms [6]. - The merger is seen as a way to combine the strengths of both companies to create new mobility value and address environmental challenges in the auto industry [11]. Group 3: Leadership Statements - Nissan's CEO, Makoto Uchida, emphasized the potential for the merger to deliver unparalleled value to customers by uniting the strengths of both brands [4]. - Honda's Director, Toshihiro Mibe, highlighted the importance of combining resources, knowledge, and technologies to navigate the evolving automotive landscape [11]. Group 4: Market Position - Honda has a market capitalization exceeding $40 billion, while Nissan is valued at approximately $10 billion, making this merger significant in terms of market impact [10]. - The merger discussions also include expanding collaboration to Mitsubishi Motors [13].