Renault stake could disrupt Nissan, Honda merger talks 

January 17, 2025
Renault stake could disrupt Nissan, Honda merger talks 
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When it comes to major car manufacturers, the dealings and the intrigue at the top of the tree would match the drama of any soap opera. The latest story line involves a proposed merger between Japanese giants Honda and Nissan. However, it now seems this marriage of convenience could be over before it has started because of Nissan's previous involvement with Renault. 


The French car maker actually has a 35% share holding in Nissan and Honda says it would prefer to merge with a wholly owned Nissan group to avoid potential foreign interference. This means that Nissan would need to find some $3.6 billion to buy out Renault. The foreign interference that Honda fears is not so much from Renault itself, but the possibility of a third party buying the Renault stake to profit from any deal. 

Honda and Nissan are currently considering if a merger is the best route forward for their brands with a decision expected around the end of January. Both currently believe they have become too small to effectively compete in the global market, where development costs have rocketed in recent years. 

The plan, moving forward, appears to be to adopt a Stellantis type model where individual brands operate under the same holding company. This allows development costs, technology and vehicle platforms to be shared. If the Honda, Nissan deal does materialise, it is also rumoured that long time Nissan collaborator, Mitsubishi, could also become part of the group.  
 
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