Honda, Nissan delay reveal of merger plan to mid-February

Jan. 31 (UPI) -- Honda and Nissan said Friday they have pushed back the planned January reveal of their merger integration outline plan to mid-February.

According to informed sources cited by The Japan Times, Honda wants to take a closer look at Nissan's rebuilding plans.

Mitsubishi Motors will also make a decision on whether to join the integration of the Japanese auto companies in February or later.

Honda and Nissan announced in a December news conference they planned to merge, creating the third-largest vehicle manufacturing company in the world.

Combined, the company would generate as much as $191.4 billion in sales and over $19 billion profit.

Honda CEO Toshihiro Mibe said at the December press conference that Nissan had to make consistent progress in its restructuring effort before the merger can proceed.

Mibe insisted Honda isn't bailing out the struggling Nissan, which plans to cut manufacturing capacity and lay off 9,000 workers after first-half 2024 profits plummeted more than 93%.

Kyodo News, citing unnamed sources, said Mitsubishi is leaning toward not joining the merger as a member of the holding company while still collaborating with Honda and Nissan.

Mitsubishi is a strategic partner of Nissan.

Should Nissan fail to satisfy Honda on its restructuring the merger might not happen. Nissan has so far cut 25% of its manufacturing capacity at three North American plants.

If the Honda-Nissan merger proceeds the companies would realize savings by sharing technology on electric vehicles and realize manufacturing efficiencies to strengthen their global competitiveness.