Nissan Motor Co, Honda Motor Co, and Mitsubishi Motors Corp have agreed to interrupt their understanding memorandum (Mou) to consider a tripartite collaboration.
Nissan and Honda signs the Memorandum in December “To begin discussions and considerations towards a business integration” between the two companies through the creation of a joint holding company.
A week ago, the media reported that companies were discussing a union. However, according to the Associated Press, the companies confirmed that they were considering closer cooperation and denied a future union.
According to Nissan and Honda, a memorandum mou signed last March 15 was intended to create a strategic partnership “to further accelerate their efforts towards achieving a neutral carbon society and a society with zero fatality.” Then, on August 1, companies signed another memorandum “to deepen the strategic partnership framework” and announced that they will jointly research the basic platform technologies for the next generation software vehicles (SDVs). The focus was to be in the essential areas of intelligence and electrification.
Mitsubishi, a member of the Nissan alliance, signed a special memorandum with Nissan and Honda to explore “participation, involvement and its possible division” as part of the joint holding company.
“By moving forward, the three companies will cooperate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles,” a press release on Thursday from Honda States. “This frame was created with MM signed on August 1 last year, trying to create new value and maximize the corporate value of each company.”
A press release from Nissan states that since the signature of the memorandum, his management team and Honda, including CEOs and the stakeholders, have discussed and considered the market environment, business integration objectives, management strategies and Structures after integration after integration. Honda issued the same notice.
“Honda proposed changing the structure from the creation of a joint holding company, where Honda would name most of the directors and chief executive based on a joint stock transfer as originally described in the memorandum, in a structure where Honda would be the parent company and Nissan subsidiary through an exchange of stock, ”reads the release.
“As a result of these discussions, the two companies concluded that to prioritize decision -making and execution of management measures in an increasingly volatile market environment that goes into the electrification era would be more Suitable to interrupt discussions and complete MMs. “
Companies plan to cooperate by moving forward within a “strategic partnership aimed at the era of intelligence and electrified vehicles, trying to create new value and maximize the corporate value of both companies.”
Nissan also announced Thursday that he will implement “comprehensive financial turning measures. “
“Nissan Motor Co. is implementing immediate measures to return its performance and create a weaker, more resilient business capable of adapting rapidly to market changes,” a press release reads.
Makoto Uchida, President and Nissan’s CEO, added, “Nissan is fully committed to his turning actions, aiming to reduce costs by about 400 billion yen [$2.6 billion]. We are committed to achieving a more efficient cost structure as we direct the high line growth through expanded competitive products that take care of the different needs of our customers. We are executing our turn – focused on efficiency and growth – with rhythm and purpose. “
OEM said the decrease in fixed and variable costs will result in a business-to-time automobile point for the 2026 fiscal year of 2.5 million vehicles than 3.1 million, enabling a 4%”stable” operating margin.
200 billion savings at fixed costs are expected from sale, general and administrative costs (SG & A), about 100 billion of rectructuring the production base, and about 30 billion Jen by development efficiency, according to the release.
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Separated image: Da-Kuk/Istock
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