- Mitsubishi is considering turning a cold shoulder to the Honda-Nissan partnership
- The brand’s low production output could be a driving factor in the decision
- It is expected to make a determination by the end of the month
Alliances between automotive companies aren’t uncommon. Its a tale as old as time: two (or more) automakers join forces, pool together resources and pop out a few cars on the same platform or using a joint technology. What’s not so common are mergers, and that’s what Honda and Nissan are considering in the very near future. One wrench in the high-stakes game is little Mitsubishi. The company is a Nissan partner and is working with Honda and Nissan on EV development, but it is now signaling that it might be signing off with a simple “no thank you,” rather than potentially taking part in the merger.
According to sources familiar with the matter speaking to Reuters, Mitsubishi is hesitant to hitch its wagon to the potential Honda-Nissan merger. The brand reportedly wants to continue its ongoing relationship with both companies, but will likely remain independently listed. Apparently, Mitsubishi’s biggest concern isn’t the baggage tacked onto the merger but the concern that its voice would be drowned out in a company dominated by Honda and Nissan.
Photo by: Mitsubishi
Mitsubishi is just a much smaller fish. In 2023, Honda built 4.19 million vehicles over the course of the year. Nissan? A lesser, but still impressive, 3.44 million. Mitsubishi produced just over 1 million vehicles in the same time period.
If it goes into business with Honda and Nissan, the brand may have a smaller seat at the table—meaning an overarching fear that what little independence it has could be stripped away. Still, it’s worth noting that Nissan is its largest shareholder, although Mitsubishi did purchase back a large quantity of its stock last November, reducing Nissan’s stake in the brand from 34% to 24%.
Mitsubishi is expected to make a decision on whether or not it plans to take part in the merger by the end of January. As of Friday, the brand hasn’t formally acknowledged whether or not it plans to enter into the merger. Officially, the brand says that it is “considering various possibilities” and that any rumors of its involvement in the Honda-Nissan merger framework were not based on sanctioned information from the company.
Let’s be real, the entire merger feels like a marriage of convenience. Even Honda’s CEO struggled to find the right words to describe just why it wanted to go through with the merger, and including Mitsubishi in the entire ordeal seems like more of a courtesy since the brand has been doing business with both
Suppose Mitsubishi does decide to go off on its own. If that’s the case, the brand will likely remain involved in the existing technology-sharing partnerships that exist with Honda and Nissan, as well as Nissan and Renault. It’s also plausible that this move would lead Mitsubishi to continue down the path that has served it best for years: focusing on niche markets like Southeast Asia.
But if Mitsubishi bites and converts the duo into a trio, well, maybe Mitsubishi could see a resurgence in the U.S. akin to its glorious Diamond-Star Motors days.
