Sgt Beavis
Member
Honda is much more of an engine company than a car company. I predict the plan is for Honda to provide engines for both Nissan and Mitsubishi, letting them cut back their product development costs.This has been rumored for awhile. The part I don't quite understand is what benefit there is for Honda.
Car companies bet heavily on the Chinese market and surprise, surprise, that hasn't gone the way they anticipated. In the long term, if the Chinese products are allowed to enter foreign markets without tariffs, most of the current companies will either be out of business or struggling to survive.
IMO, it’ll be very interesting to see how the structure of this merger (if it happens) plays out. Will all three companies be held separately be the “holding company” they look to create or will they go an entirely different route. Establishing a holding company for all three instead of just having a plain buy out may give Honda a good way to pull out if things go south. Also, this won’t be a good thing of Mitsu or Nissan’s leadership have much of a say in matters. They’ve already shown they don’t know how to run a car company.