Nissan and Honda have announced they are beginning merger talks.A third Japanese automaker, Mitsubishi, will also participate in the discussions.The companies hope a merger could help them take on Tesla and Chinese EV makers, Nikkei previously reported.Nissan and Honda, two of Japan's largest car companies, have announced that they are beginning merger talks.Advertisement The two automakers have agreed to proceed with discussions to build a "strategic partnership focused on intelligence and electrification ...

Japanese automakers Honda and Nissan have announced plans to join forces, forming the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.The two companies said they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors also had agreed to join the talks on integrating their businesses.“We anticipate that if this integration comes to fruition, we will be able to deliver even greater ...

Nissan and Honda are reportedly considering a merger.But former Nissan CEO Carlos Ghosn said the move suggests that Nissan is in "panic mode.""There is practically no complementarity between the two companies," Ghosn told Bloomberg on Friday.The potential merger between Japanese automakers Nissan and Honda is a "desperate move," said Carlos Ghosn, Nissan's former CEO.Advertisement On Tuesday, Japanese newspaper Nikkei said the two companies are entering into merger negotiations.Pooling their resources woul ...

Nissan Motor will be rolling back its diversity initiatives after speaking with conservative activist Robby Starbuck – who previously led successful boycotts against major companies like Walmart and Tractor Supply forcing them to cut their DEI programs.The Japan-based automaker’s Americas unit will stop funding Pride events and cancel its hiring and promotion quotas for diverse applicants, according to Starbuck.Nissan’s staff training will focus on its business agenda, eradicating DEI and LGBTQ training req ...

One of these companies looks like a pretty attractive investment whether a merger deal happens or not.There were big things happening in Japan on Wednesday as news of a potential merger by Nissan Motor  (NSANY 17.98%) and Honda Motor (HMC -4.00%) sent Nissan shares up by 18.5% through 2:25 p.m., but pushed Honda stock down by 3.3%. Meanwhile, investors in one automaker that these two would be teaming up to compete with, Toyota Motor (TM 1.54%), aren't one bit worried.Toyota stock was up 2.6%.United against ...

Key TakeawaysNissan and Honda acknowledged they are mulling a potential merger, according to a statement from Nissan and media reports Wednesday. Foxconn is also reportedly interested in a Nissan stake. Nissan shares soared nearly 24% in Tokyo, and Honda's dipped.The manufacturers have been exploring how to collaborate for months, but said no decisions, including on a merger, have been made. Honda and Nissan have acknowledged the possibility of a merger, driving an active trading session in Tokyo for the J ...

ToplineNissan Motor’s shares surged sharply on Wednesday morning after reports emerged that the company had initiated talks for a merger with fellow Japanese carmaker Honda, in a move that intended to help Nissan wade through an ongoing crisis and reportedly allow the Japanese companies to compete better against electric vehicle rivals from China and Tesla.Makoto Uchida president and CEO of Nissan, shakes hands with Toshihiro Mibe director, president and ... [+] representative executive officer of Honda, af ...

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Core Viewpoint - Nissan is struggling to turn around its business as sales and profits have significantly declined, compounded by proposed tariffs from the incoming Trump administration that could further hinder recovery efforts [1][3][7]. Group 1: Sales and Production - Nissan's global sales in October decreased by nearly 2.7% compared to the previous year, with double-digit declines in both China and Europe, although there was a slight increase in the US for the first time in three months [6]. - Vehicle production has dropped by 7.1% globally in the first 10 months of 2024 compared to the previous year, with the exception of Mexico, where production rose nearly 10% [3][7]. - Nearly one in four Nissan vehicles produced globally last month were manufactured in Mexico, indicating a high exposure to potential tariffs [3][5]. Group 2: Financial Performance - Nissan's profit for the quarter ending in September fell to approximately $210 million, a significant drop from $1.4 billion during the same period last year [7]. - The company has announced plans to cut 9,000 jobs and reduce 20% of its manufacturing capacity as part of its turnaround strategy [7]. Group 3: Market Challenges - The proposed tariffs by the incoming US president could impose a 25% import tax on goods from Mexico and potentially 200% on vehicles, which would severely impact Nissan due to its production facilities in Mexico [4][5]. - Nissan is facing increased competition from Chinese automakers, which are gaining market share in China with affordable electric vehicles [8][10]. - The company is reportedly seeking additional investors after European partner Renault sold some of its holdings, with a senior official indicating that Nissan has "12 or 14 months to survive" [8].

Financial Performance - Nissan's net revenue for the first half of the fiscal year was flat at ¥5.984 trillion, while operating profit fell by 90% year-over-year to ¥32.9 billion, and net income decreased by 94% to ¥19.2 billion [4][7][8] - Total global retail sales decreased by 1.6% to 1.596 million units, with significant declines in China (5.4%), Japan (2.4%), and North America (1%), while Europe saw a slight increase of nearly 1% [6][8] - Free cash flow was negative at ¥448.3 billion, but the company maintained a net cash position of ¥1.36 trillion [7][8] Business Line Performance - The automotive business net revenue was ¥5.35 trillion, with a net loss of ¥116.1 billion [7] - Global production volume was reduced by 7.9% to 1.56 million units to adjust inventory levels [6] Market Performance - Sales in China are projected to decrease by 13.1%, while unit sales in Japan are expected to reach 480,000 units, and North America is forecasted to see a 6.2% increase [11][12] - The company anticipates a decline in sales in Europe by 3.1% and a slight decrease of 0.2% in other markets [11] Company Strategy and Industry Competition - Nissan is revising its full-year guidance, expecting revenues of ¥12.7 trillion and operating profit of ¥150 billion, which is ¥350 billion lower than the previous forecast [12][13] - The company is implementing a turnaround plan to create a lean and resilient business structure, including a 20% reduction in global production capacity and a headcount reduction of 9,000 [24][25][58] - Strategic partnerships with Renault, Mitsubishi Motors, and Honda are being promoted to enhance competitiveness and ensure sustainable growth [21][28] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the significant challenges faced, including the inability to meet sales plans and the impact of rising costs and competition, particularly in the U.S. market [16][17][34] - The CEO expressed a commitment to rebuilding the company and enhancing brand power to improve market presence [29][41] Other Important Information - The company has decided not to pay an interim dividend due to the current situation, with the year-end dividend to be determined later [14] - A new Chief Performance Officer will be appointed to oversee sales and profit, with further changes to the leadership team planned [22][44] Q&A Session Summary Question: What are the causes behind the underperformance in U.S. operations? - The CEO identified the inability to sell core models and the lack of hybrid offerings as major issues, along with increased competition and rising incentives impacting profitability [34][38] Question: How will the U.S. presidential election impact business? - The CEO mentioned ongoing lobbying efforts regarding tariffs and emphasized the need to monitor the situation closely [40] Question: Will the partnership discussions with Honda be affected by Nissan's performance? - The CEO confirmed that discussions with Honda will continue as the focus remains on maximizing competitiveness through collaboration [46][47] Question: Is the sales target of 1 million unit increase still achievable? - The CEO acknowledged that achieving the original target is uncertain and emphasized the need for immediate actions to address current performance issues [53][54] Question: What specific actions are being taken to stabilize the business? - The company is implementing cost reductions, production adjustments, and a focus on enhancing product competitiveness [24][25][26]