Despite its large market value and established history, Honda lacks experience in the specialized off-road vehicle manufacturing domain when compared to Mitsubishi.
Honda also does not have a strong suit in producing affordable automobiles to conquer the developing markets. Currently, Mitsubishi has a foothold in Southeast Asia with vehicle lines developed for the region’s terrain, such as the X-Force and Xpander.
Hence, Honda is believed to be interested in merging with Nissan to gain access to Mitsubishi’s core technologies (Mitsubishi currently has 24% of its shares owned by Nissan and is also a partner in the Renault-Nissan-Mitsubishi alliance).
On the other hand, Mitsubishi is not very keen on the idea of a merger. They prefer to collaborate with Nissan and Honda while maintaining their independent positions.
As of February 2025, Mitsubishi Motors has a market value of over $3.4 billion, while Honda stands at $43.66 billion, and Nissan is valued at approximately $5.51 billion. The significant disparity in value means Mitsubishi would have less decision-making power in a combined entity. This “cold shoulder” from Mitsubishi has left Honda in a tricky situation.
Additionally, Honda’s choice of the name “Honda Corporation” for the new joint venture seemed to undermine Nissan, leading to the cancellation of the merger negotiations.
TH (Tuoitrethudo)
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The Perfect Headline:
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