Tokyo1 hour ago
- Copy link
The deal between Japanese auto maker Nissan and Honda will no longer be. Both companies have decided not to extend it forward. On December 23 last year, Honda and Nissan signed the Memorandum of Understanding for merger.
Had this deal been done, both of them would have been a group of $ 60 billion (the current value- about Rs 5.21 lakh crore) value. Which would have been the fourth largest group in the world in terms of vehicle cell after Toyota, Volkswagen and Hyundai.
Honda wanted to make Nissan her subsidiary
According to reports, Nissan took the first decision to retreat with this deal as Honda wanted Nissan to become its subsidiary. Due to this, differences increased between the two, due to which further negotiations became difficult. Another partner of this deal Mitsubishi Motors had said to consider the merger.
Why did companies decide the deal?
Due to decline in sales and profits in Chinese and American markets, companies had to cut their workforce and production capacity. The profits of companies also declined by about 70% for some time. Lowering stake in both large markets was believed to be the main reason for coming with companies.
The three companies said in a statement that we will cooperate with each other through strategic partnership in the era of intelligence and electrified vehicles. Nissan and Honda have seen the sharp growth of electric vehicle manufacturers such as BYD in their industry and Major Chinese market and affect their market. Apart from this, both are afraid of imposing tariffs from America.
Nissan will reduce 9,000 jobs and 20% capacity
Nissan is focusing on its restructuring plan announced in November after the deal did not proceed. Under which the company will cut 9,000 jobs and reduce its 20% capacity from the global market.
According to reports, Nissan will have to reduce its capacity in China. The company here operates eight factories through its joint venture with Dongfeng Motor. To make the company’s operation comfortable, Nissan has already stopped production at its Changzhou plant.
Nissan shares fell, Honda rose by 2%
Nissan Motor shares fell by 0.34% after the news of the deal breakdown. Whereas, Honda Motor’s stock closed at 1,434 levels above 2.14%. Earlier, after the first report of the merger conversation on December 17, Nissan shares increased by more than 60% in late December and Honda’s stocks rose by about 26%. However, this benefit for Nissan has later fallen for 21% and 11% for Honda.
,
Read this news too …
Honda-Nisan’s merger will be in June: companies signed MOU; Together will create a holding company, will also do separate work for your brand
Japanese car makers Honda and Nissan have signed the Memorandum of Understanding for merger. The first phase conversation took place between companies on Monday (23 December). Companies have given this information in the official statement.
Click here to read the full news …
