Mitsubishi Plans Not To Participate In The Nissan-Honda Merger, What's The Reason?

The merger between Nissan-Honda-Mitsubishi (sourced: Nissan Global)

JAKARTA - At the end of last year, the global automotive industry was shocked by the merger step between Nissan and Honda and Mitsubishi Motors in business through the establishment of a joint holding company. Such a move must be taken by the manufacturer in order to confront an uncertain automotive market and avoid Nissan from the slump period that has approached it in recent times. However, there is another surprising news from this partnership. Launching from Reuters, Saturday, January 25, according to three unnamed sources, this name says that Mitsubishi plans not to take part in the merger plan. However, this manufacturer remains registered while continuing the cooperation with the two brands. This news is certainly quite surprising considering that Nissan is Mitsubishi's largest shareholder by 24 percent. The final decision on this matter is planned to be announced this month. It is said that Mitsubishi's cause is reluctant to join this partnership because of concerns that it will be difficult to influence the parent company's management decisions. This happens because of the relatively small size of share ownership. Thus, this has the potential to make this manufacturer logo three diamonds unable to be free in developing the market according to its wishes so as to maintain its structure to expand its market in several regions.

In a statement, Mitsubishi Motors said there were media reports about their plans to participate in the business integration framework being considered by Honda and Nissan, but the report was not based on the information announced by the company. The merger agreement was built by Nissan and Honda on August 1, signaling the start of a strategic partnership to form a joint venture focused on electrification plus Mitsubishi joining the cooperation.