Two major companies are said to be in negotiations regarding a potential merger. Japanese publication reports that two major automakers intend to sign a memorandum of understanding, outlining plans to consolidate their shared equity stakes by establishing a new holding company for the merged entities.
The proposed merger between Japan’s second- and third-largest automakers would combine their assets, creating a more formidable competitor to challenge the market leader. That it will further position them in an even more prominent place among China’s electric vehicle manufacturers. The Nikkei newspaper reports that Mitsubishi may join discussions surrounding potential deals or partnerships in the future.
Last year, Honda and Nissan reportedly collaborated on software development, battery technology, and other electric vehicle components. The “combine-and-compete” alliance has taken a significant step forward by partnering with Toyota to acquire stakes in Daimler and FCA. As imminent technological advancements become a reality, the landscape is poised to shift, with a dwindling number of legacy automobile manufacturers vying for market share.
Additionally, on Tuesday, Honda announced it will step up production of hybrid vehicles outside of China. By 2030, the automaker plans to nearly quadruple its yearly hybrid revenue, from its current levels to achieve a significant milestone in sustainability efforts. “Honda aims to become carbon neutral by 2050, but as CEO Katsuto Hayashi noted on Sunday, strong demand for hybrids is expected to persist in the near term.” “While significant advancements have been made globally, the majority of this growth has taken place in North America.”
As rumors swirl surrounding his impending presidency, US President-elect Donald Trump is said to plan. The administration’s transition workforce is reportedly poised to wield significant leverage in driving the adoption of electric vehicles (EVs) and related charging infrastructure, while redirecting efforts away from hindering access to Chinese-sourced automotive components, batteries, and parts. Local weather scientists assert that a swift transition from gas-powered to electric vehicles is crucial to reduce carbon emissions and mitigate the devastating effects of climate change on our planet?
