The complex dynamics of the proposed Honda-Nissan-Mitsubishi merger have come to light in the wake of a breakdown between the three brands, with Mitsubishi’s side of the story now in the spotlight.
Last week, Honda, Nissan and Mitsubishi announced they wouldn’t pursue merging by mid-2026, which would’ve made the trio the world’s third-largest carmaker based on recent sales volumes.
While much of the focus has been on how Honda and Nissan couldn’t agree on merger terms, Japanese newspaper Yomiuri Shimbun reports Mitsubishi – by far the smallest of the three brands – didn’t want any part in the merger to begin with.
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Currently Mitsubishi is the smallest player in the Renault-Nissan-Mitsubishi Alliance, but Nissan is its largest shareholder with a 24 per cent stake – though this was reduced from a 34 per cent stake prior to November.
According to insiders, Mitsubishi Motors CEO Takao Kato said at a meeting of Mitsubishi Corporation executives that he “really didn’t want to appear” at the December press conference announcing the signing of a Memorandum of Understanding (MoU) to merge between his company, Nissan and Honda.
Less than a month after that press conference, The Japan News, citing unidentified sources, reported Mitsubishi was making arrangements to exist outside of the Honda-Nissan merger despite earlier indications that it was strongly considering joining the partnership.
At the time, the publication reported Mitsubishi could still co-operate with Nissan and Honda, however, it was likely to retain its independent listing status rather than become a part of the joint force.
Nissan CEO Makoto Uchida, Honda CEO Toshihiro Mibe and Mitsubishi CEO Takao Kato
Mitsubishi had said it would decide on whether it would join the merger by the end of January 2025, however it made no official announcement until Honda and Nissan declared talks had ended earlier this month.
Yomiuri Shimbun also reports the Mitsubishi Corporation – which holds a 20 per cent stake in the carmaker – was against the idea of its automotive brand merging with its Japanese counterparts, due to the reductions in the role of the brand’s management which would inevitably come.
Despite Honda showing Nissan tough love – reportedly wanting it to become a subsidiary and ditch its unique ‘e-Power’ hybrid system – the carmaker was interested in what Mitsubishi could bring to the table.
While Honda and Nissan have a clear focus on the US (where each are suffering from sales slides), Mitsubishi is the clear leader of the trio in South-East Asia, a lucrative market which largely focuses on high-volume, low-cost vehicles.
Honda was also reportedly keen to lean on Mitsubishi’s plug-in hybrid experience, being arguably the leader out of the Japanese brands with this particular powertrain technology.
It’s not yet clear whether Mitsubishi will take a seat at the table should merger talks restart between Honda and Nissan, with a Financial Times report this week claiming Honda will resume talks if Nissan CEO Makoto Uchida resigns.
Uchida-san is reportedly facing pressure from his own board as well as partner Renault after merger negotiations broke down.
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