HCM associates wake to news of merger talks with Nissan, Mitsubishi
Posted December 23, 2024
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Last week's rumours of a brewing collaberative relationship between Honda, Nissan, and Mitsubishi Motors was announced officially earlier this morning as a basic agreement to proceed with discussions based on the framework established in a Memorandum of Understanding between Nissan and Honda on August 1, 2024.
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Successful negotiations would include business integration through the establishment of a joint holding company, and achieving synergies at an increased level through Mitsubishi Motors’ participation or involvement in the business integration. Mitsubishi Motors has until the end of January 2025 to makes its decision.
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"At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors' participation in the business integration discussions of Nissan and Honda will lead to further social change, and that we will be able to become a leading company in creating new value in mobility through business integration," said Honda Director and Representative Executive Officer Toshihiro Mibe. "Nissan and Honda will start the discussion from today onwards with an aim to clarify the possibility of business integration by around the end of January in line with the consideration of Mitsubishi Motors."
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This morning's merger news comes while HCM is on its Christmas season shutdown, resuming production Jan. 2, 2025.
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Last April, Honda announced it was investing more than $15 billion at Honda of Canada Mfg. (HCM) to build two new facilities in Alliston with capacity to build 1,000 vehicles a day. (240,000 a year) and produce its EVs, hybrids, and internal combustion engines on the same line. The best case scenario is a 2028 start -up. The new battery plant with capacity for 36 gigawatts is planned startup in 2029. HCM anticipates adding approximately 1,000 new direct jobs to its current roster of about 4,200 associates.
John Bordignon, Brand Communications, Honda Canada told Free Press Online this morning via email there was no way to speculate what a merger would mean for HCM.
"Since this is a MOU with discussions and collaborate efforts ongoing and not finalized, it’s too early to gauge any impact at this time."
