Analyst Thinks A Nissan-Honda Partnership Is Possible

[cawimmer430]

Analyst Thinks A Nissan-Honda Partnership Is Possible

An analyst believes a merger between Nissan and Honda is not beyond the realms of possibility, Bloomberg reports.

According to LightStream Research analyst Mio Kato, the reported 'fractured' relationship between Nissan and Renault (even if the two companies claim otherwise publicly) could encourage the Japanese automaker to seek out a new partnership that would allow it to rival Toyota. It could make that happen if it were to join forces with Honda.



"Honda has never been one to engage in aggressive M&A and a merger between Honda and Nissan should be unthinkable, but with Toyota's increasing competitiveness we feel that if Nissan desired an alliance partner to replace Renault, Honda may not be entirely against the idea," Kato said.

Neither Honda nor Nissan have responded to the report but recently, Nissan denied claims that it is thinking about ending its alliance with Renault following the recent escape of former chairman Carlos Ghosn from Japan.

Kato believes that as car manufacturers look to establish strong partnerships in the coming years, the Japanese car industry could be split into two giant groups, one of which would be Toyota which already has stakes in Mazda, Suzuki, and Subaru.

If Nissan were to ditch Renault in favor of Honda, the new group's annual sales could rise from just under 11 million units a year to roughly 12 million units annually.

"Nissan does have attractive possibilities to dangle in front of potential suitors and Toyota's relentless march forward could necessitate drastic change for those on the outside in Japan," he wrote.


Link: https://www.carscoops.com/2020/01/analyst-thinks-a-nissan-honda-partnership-is-possible/

[MrH]

I have zero problem with the shitty OEMs partnering up (see Fiat & Chrysler ), but this?  No.  Just no.

[Xer0]

All of the things that Honda would gain from this - a 20 yr old RWD platform, a V8 truck engine, and access to the American sub prime car lending market - are things that it doesn't need.  Honda has never cared for chasing pure volume and good for them because if they did, they would be Nissan right now 

[giant_mtb]

Honda is way too good for Nissan.

[MX793]

All of the things that Honda would gain from this - a 20 yr old RWD platform, a V8 truck engine, and access to the American sub prime car lending market - are things that it doesn't need.  Honda has never cared for chasing pure volume and good for them because if they did, they would be Nissan right now 

Nissan does have a leg up on Honda in the EV game.  And they have a variable compression engine and an infinitely variable valve lift system.

[Xer0]

Nissan does have a leg up on Honda in the EV game.  And they have a variable compression engine and an infinitely variable valve lift system.

Fair on the EV point, but judging by what Honda's CEO has recently said it doesn't seem like full EV is what Honda is going for right now.  We'll see if that's wise or not in 10 years.  As for the engine, from reading it sounds a little half baked with more promise then actual delivery.

[Raza]

370Z based S2000? 

[SJ_GTI]

370Z based S2000?

S2000 based 370Z.

[Speed_Racer]

Not sure how this would benefit Honda in any way. Nissan should hit up Mitsubishi

[2o6]

Not sure how this would benefit Honda in any way. Nissan should hit up Mitsubishi

That alliance already exists.

https://en.wikipedia.org/wiki/Renault%E2%80%93Nissan%E2%80%93Mitsubishi_Alliance

[Laconian]

Leaf rebadges? That'd be a pretty low-effort way to get those corporate CO2 emission numbers under the limit in Europe.

[Raza]

S2000 based 370Z.

Altima-based S2000 and 370Z!

[Speed_Racer]

That alliance already exists.

https://en.wikipedia.org/wiki/Renault%E2%80%93Nissan%E2%80%93Mitsubishi_Alliance

Huh, I didn't know they were part of that. Guess I haven't been paying attention