AutoBeta(AutoBeta.net)08/17 Report--

The Japanese government is trying to press ahead with the merger of Nissan and Honda. The Japanese government has proposed a merger between Honda and Nissan and tried to broker negotiations between the two carmakers, the Financial Times reported. The move is a measure considered by the Japanese government because of concerns about the future of the country's auto industry.

At the end of 2019, the Japanese government proposed a merger with Honda and Nissan for the first time, fearing that Japanese carmakers would lose their edge in the transition to electric and self-driving cars, foreign media quoted several people familiar with the matter as saying.

With the rapid rise of electric vehicle technology and self-driving technology, global automakers are facing the pressure of transformation, while many enterprises achieve large-scale development in the form of mergers or alliances. For example, Volkswagen formed an alliance with Ford and PSA Group merged with FCA Group, which not only saved R & D costs, but also strengthened its technological advantages.

However, the Japanese government's plan was not approved by Nissan and Honda, so the merger was aborted only at the proposed stage.

Honda executives opposed the idea, citing the complex capital structure between Nissan and Renault, according to people familiar with the matter quoted in the report. Another person close to Nissan's board also objected, as Nissan is focused on getting its existing alliance back on track.

At present, there are eight major brands in the Japanese automobile manufacturing industry, including Mazda, Subaru, Suzuki and Daifa, which all cross and continue with Toyota and have a strong cooperative relationship. Nissan, Mitsubishi and French carmaker Renault formed an alliance. Only Honda has not strengthened its cooperation with other automakers, and as the integration of automakers accelerates, it is a matter of concern whether Honda can continue to develop independently in the future.

It is a trend for automakers to integrate and form alliances. In June 2020, Volkswagen Group and Ford Motor Company formally signed a strategic alliance agreement, which will complement and cooperate with each other in the fields of medium-sized pickups, commercial vehicles and electric vehicles. At the same time, the two companies will develop self-driving models on a large scale.

In July this year, the new group after the merger of PSA Group and FCA Group was officially confirmed and named "STELLANTIS". The advantages of the merger are cost savings related to technology, products and platforms, as well as slowing demand and rising electrified costs in the global automotive market.

Although the Japanese government's plan to promote the merger of Honda and Nissan has stalled, it also shows that Japan is seeking to improve its position in the field of electric cars and self-driving technology.

Honda is Japan's third-largest carmaker, with annual sales of 4.8 million vehicles. Honda also covers motorcycles, private jets, lawn mowers and marine engines. Honda is also the world's largest engine maker.

Nissan is Japan's second-largest carmaker, with global sales of nearly 5 million vehicles in 2019. But Nissan is now in trouble, with a huge loss of 671.2 billion yen (44.5 billion yuan) in 2019 and the same amount in 2020. At present, Nissan is seeking business restructuring, begins to adjust its business route, and has formulated a four-year business reform plan.

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