Nissan May Be ＂Acquired＂ by Honda

According to reports, Nissan Motor is seeking a significant investor to help it navigate a critical period as its long-term partner Renault reduces its stake in the company from 46% to 40%. Nissan is also considering attracting stable long-term shareholders, such as banks or insurance companies, to replace part of Renault's equity, and it is not ruling out the possibility of collaborating with other Japanese automakers, including Honda. Facing a decline in sales in the Chinese and American markets, Nissan is implementing a series of restructuring measures. Additionally, Nissan plans to reduce its stake in Mitsubishi Motors from 34% to 24% to meet restructuring needs. Nissan executives indicate that the company faces a survival challenge of 12 to 14 months.

Chinese car companies have exerted considerable competitive pressure on Japanese automakers. Since 2023, Japanese automakers have seen rapid growth in Asian markets, including China. However, entering 2024, their market share has significantly下滑 due to the price wars of electric vehicles in China and the expansion of the global market. Particularly in the Chinese market, Japanese automakers face severe challenges. In Southeast Asian markets, the rise of Chinese brands has weakened the market share of Japanese vehicles.

Nissan's financial report for the first half of 2024 shows a significant decline in revenue and profit, closely related to the drop in sales in the Chinese market. As of October 2024, Nissan's cumulative sales in the Chinese market have decreased by nearly 10% year-on-year. Consequently, Nissan has lowered its full-year operating profit forecast.

Faced with the dual pressures of market competition and declining sales, Nissan is taking urgent measures, including reducing global production capacity by 20% and laying off 9,000 employees. Nissan's Chief Executive Officer, Makoto Uchida, and other executive committee members have voluntarily reduced their salaries to weather the storm. Additionally, Nissan plans to decrease its holding in Mitsubishi to improve its financial situation.

In contrast, Honda Motor's financial situation is relatively better, but it also faces a decline in sales in the Chinese market. Japanese automakers are accelerating cooperation to handle challenges. This year, Nissan, Honda, and Mitsubishi signed a memorandum of understanding to explore the establishment of a strategic partnership in intelligent and electrified vehicles. Moreover, automakers like Toyota, Mazda, and Subaru are strengthening cooperation to jointly develop electric vehicles.

At the crossroads of the new energy transition, Japanese automakers are facing unprecedented challenges. Through cooperation and international collaboration, they are expected to make breakthroughs in reducing costs and enhancing technological strength in the new energy vehicle market. However, this process is not achieved overnight. Industry insiders believe that if Honda were to acquire Nissan's shares, it could lead to a closer relationship between the two companies, but the specifics remain to be seen. Renault has expressed support for a "win-win cooperation" between Nissan and Honda.