Mitsubishi won’t join Nissan-Honda merger – report

The looming merger of Japanese carmakers Honda and Nissan may not include Mitsubishi after all, with reports from the nation claiming the latter brand won’t go all-in on joining its compatriots.

The Japan News, citing unidentified sources, reports Mitsubishi is making arrangements to exist outside of the Honda-Nissan merger, which is expected to be finalised by mid-2026, despite earlier indications that it was strongly considering joining the partnership.

According to the publication, Mitsubishi could still co-operate with Nissan and Honda, however, it is likely to retain its independent listing status, rather than become a part of the joint force.

Mitsubishi has denied it has reached a decision on its future regarding the potential merger.

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Honda and Nissan announced plans to merge in mid-2026 last month, after a definitive agreement laying out the specifics of the deal, including share transfers, is completed by June 2025.

Nissan is currently a part of the Renault-Nissan-Mitsubishi Alliance, founded in 1999 between the former pair of carmakers, before the latter joined in 2016.

While Nissan is Mitsubishi’s largest shareholder, it recently sold off an undisclosed portion of its 34 per cent stake.

Mitsubishi had previously said it would decide on whether it joins the merger by the end of January 2025.

A merger between Honda and Nissan would make the new Japanese alliance the world’s third-largest carmaker, based on 2023 sales volumes, behind market leader Toyota (including Lexus, Daihatsu and Hino) and the Volkswagen Group.

In 2023, Honda and Nissan sold 7.35 million vehicles combined, while Mitsubishi sold approximately 900,000, further increasing the total.

The potential three-brand merger would almost split Japan’s automotive industry in half, with Toyota heading the other side, as it also has minority shareholdings in Subaru, Suzuki, and Mazda.

Nissan has been financially struggling in the recent past, with a senior official close to the carmaker last year telling The Financial Times “we have 12 or 14 months to survive”.

Earlier this month, Japanese outlet Kyodo News reported that Honda wants Nissan to buy out Renault’s 35.7 per cent stake in its partner, citing insider sources.

The stake, reportedly worth about 557 billion yen (A$5.78bn), is reportedly causing Honda concern, as it believes Renault’s stake could be purchased by a third-party during negotiations with Nissan.

Renault only recently reduced its stake in Nissan, from 43.4 per cent to the current 35.7 per cent holding.

While Nissan’s financial woes have been largely attributed to slipping performance in the US and China, it’s a different story in Australia where the brand outperforms Honda.

Nissan delivered 45,284 vehicles here in 2024, when Honda managed just 14,092 deliveries.

MORE: Honda CEO struggles to name benefits of Nissan merger MORE: Honda to merge with Nissan by middle of 2026 MORE: Former Nissan CEO Carlos Ghosn claims Honda is being pressured into merger MORE: Nissan has ’12 or 14 months to survive’ as financial situation gets dicey – report