Reports surfacing through several news media outlets indicate that two Japanese car makers, namely Honda Motor and Nissan Motor, will merge. They have been said to discuss a possible merger in discussions that would aid in enabling them to solidify themselves in the very aggressive market for cars globally. When this report was reported yesterday, on Wednesday, Nissan had increased by 24%, which also became its intra-day high.
On Wednesday, Honda's Executive Vice President, Shinji Aoyama, reacted to the news of its exploring other alternatives for the merger. The alternatives include the capital expenditure agreement and other mergers. However, Aoyama would not say what will come after the talks.
In the case of a merger, Honda and Nissan will be in a position to manufacture 7.4 million units every year. The companies, therefore, will create a third-largest automobile producing firm in the world that follows Toyota and Volkswagen regarding car sales.
It is premised on the existing joint venture between the two companies, which collaborated to forge a strategic alliance in March with a commitment to developing new electric vehicles. It became the commitment to innovation under the evolving landscape of this automobile.
This union might give rise to a giant that can successfully meet new challenges and opportunities at the international level.
