Report: Mitsubishi “Not Keen” To Join Nissan-Honda Merger Yet

Takao Kato, President of Mitsubishi Motors during the joint press conference held last month to announce merger talks with Nissan and Honda.

Mitsubishi Motors (Mitsubishi) is reportedly “not keen” to join the Nissan-Honda merger. Instead, the Japanese tri-diamond marque intends to remain listed and continue its cooperative relationship with both companies, says unnamed insiders.

As a refresher, Nissan and Honda jointly announced that both companies were discussing plans to merge last month, with Mitsubishi given the option to join as well. Presently, Nissan owns a 24% stake in Mitsubishi, making the former a top shareholder for the latter.

Mitsubishi was given the option to join the proposed Nissan-Honda merger, but it seems the tri-diamond marque is reportedly "not keen" on which.

Besides strengthening collaboration with both automakers, Mitsubishi plans to remain independent and retain its current structure to focus on expanding market share in Southeast Asia (ASEAN) – Mitsubishi says it currently holds a competitive edge in this market region.

Moreover, the decision also reportedly stems from challenges all three firms face in managing enormous development costs for next-gen “software-defined vehicles” (SDVs) and autonomous driving tech. The former type also represents a significant shift in the auto industry.

Insiders reportedly say that Mitsubishi strongly believes it can achieve mutual product supply and technical partnerships with Nissan and Honda without a merger.

For now, Mitsubishi reckons in can achieve mutual product supply and technical partnerships with both Nissan and Honda without needing for an immediate merger.

In addressing these reports, a Mitsubishi spokesperson said “At this stage, we are considering various possibilities, and no specific direction has been decided.” Said spokesperson adds that information regarding this decision will be released “at the appropriate time”.

In ASEAN, Mitsubishi appears to hold a strong market presence and high growth potential.

While Mitsubishi’s decision may delay full integration for Nissan and Honda, its focus on ASEAN does underscore its strategic priorities.

Presently, Mitsubishi has both a strong presence and high growth potential in the region. These also aligns with the firm’s broader goals of maintaining competitiveness and exploring partnerships to address future industry challenges.