Seemingly at the behest of the Japanese government, Honda will be absorbing competitor Nissan and possibly having Mitsubishi as the cherry on top - here is why JDM enthusiasts should care.
When you think about Japanese automakers, Honda and Nissan are household names—two titans that have shaped car culture for decades. But even legends get tired, and as the automotive world shifts into high gear on the road to electrification, these two giants have decided it’s time to team up. Yes, Honda and Nissan, along with a cameo from Mitsubishi, are merging. Think Avengers, but for cars (and with Mitsubishi as Hawkeye). Let’s break down this historic move and why it matters—not just for Japan, but for us humble JDM import enthusiasts here in Canada.
Source: Honda in Car and Driver
Honda and Nissan: Two Titans, One Struggling
Let’s be real: Honda and Nissan haven’t exactly been riding high over the past decade. Honda? Solid, dependable, like that friend who’s not flashy but always shows up with snacks. Nissan, on the other hand, has been the automotive equivalent of that one guy who peaked in high school and just can’t seem to catch a break.
Case in point: in 2024, Nissan’s profits took a nosedive—90% down from the year before (Bloomberg). Sales weren’t much better, thanks to an aging lineup that just didn’t excite anyone. Honda, meanwhile, kept plugging away, doing okay but not great. So what’s the solution? A merger, obviously. Because if there’s one thing that fixes financial woes, it’s a good old-fashioned partnership with a rival.
Mitsubishi: The sidekick
Now, let’s talk about Mitsubishi. If this were a superhero team-up, Mitsubishi would be the Aquaman of the group - and not the Jason Mamoa kinda of Aquaman. Only really useful when fish are involved. But here they are, swimming into the merger with just enough relevance to avoid being left out entirely. Back in the early 2000s, Mitsubishi got caught hiding safety defects, and just as it was recovering, the company decided to spice things up by faking fuel economy data in 2016 (Wikipedia). Spoiler alert: this did not end well.
Fast forward to today, and Mitsubishi is still that scrappy underdog trying to stay in the fight. After Nissan bailed them out in 2016 with a 34% stake, Mitsubishi has been hanging on by a thread (Car Guide). Now, they’re tagging along in this merger like the third wheel nobody asked for but everyone’s too polite to kick out.
What this ultimately boils down to is the EV game. One that none of these companies is really winning.
The Leaf: Nissan’s EV One-Hit Wonder
Remember the Nissan Leaf? The OG mass-market EV that made waves in 2010? Nissan was ahead of the curve, and then… well, it kind of parked there. While Tesla and BYD sped off into the future, Nissan stuck with the Leaf and let the competition leave it in the dust. By 2024, the Leaf was more of a relic than a contender (WSJ).
Honda wasn’t much better—sure, they tried, but “tried” doesn’t win races. Now, they’re banking on this merger to pool their EV efforts and finally give the industry heavyweights a run for their money. It’s like a buddy cop movie where both leads are flawed but have just enough chemistry to maybe,... just maybe,... pull it off.
Meanwhile, China’s EV market has been leveling up like it’s playing on cheat mode. In 2023, Chinese automakers overtook Japan as the world’s largest auto exporters (Reuters ). Brands like BYD are cranking out affordable, high-tech cars faster than you can say “market dominance.”
This is the existential crisis that’s been keeping Japanese automakers up at night. It’s no coincidence that Honda and Nissan started merger talks now—they know that if they don’t do something, they’ll be roadkill in the great EV race.
It’s worth noting that this merger didn’t just pop up out of nowhere. The Japanese government has been nudging automakers toward consolidation for years. Back in 2019, officials reportedly urged Honda and Nissan to sit down and talk, warning them about the growing threat posed by Chinese EV manufacturers (Reuters).
Japan’s auto industry is a cornerstone of its economy, and with China now out-exporting Japan in vehicles, the pressure was on. This merger is as much about preserving Japan’s global automotive influence as it is about staying competitive in the EV space... and honor. Because Japan hates seeing its titans of industry fail.
Foxconn: Because Why Not?
Here’s a plot twist: Foxconn—the company that makes your iPhone—wanted to team up with Nissan earlier this year. Why? Because apparently building EVs is the new tech company flex (Bloomberg). While the partnership didn’t pan out, it added a fun “what if” to the story.
Will it work out?
Investors: Loving the Power Couple
Money talks, and after this announcement, it said, “We like this.” Nissan’s stock jumped a whopping 24%, while Honda got a respectable 4% boost (Investors.com).
Why the excitement? Investors see potential in this pairing. Combining Nissan’s EV experience (read: the Leaf) with Honda’s steady reliability could create a dream team. Or at least a functional one. Either way, Wall Street seems to think this duo has the horsepower to compete with the Teslas and BYDs of the world.
Analysts are cautiously optimistic. Moody’s analysts have praised the merger as a strategic move to bolster global competitiveness (Investopedia). The logic is simple: shared R&D and manufacturing could cut costs and boost innovation.
But it’s not all sunshine and turbo whistles. Critics point out that Honda and Nissan’s similarities—both strengths and weaknesses—might lead to overlap instead of synergy. Because nothing screams efficiency like two teams arguing over whose factory makes the better EV battery.
Carlos Ghosn: Throwing Shade from the Sidelines
Cue the dramatic music: Carlos Ghosn, Nissan’s infamous ex-CEO, isn’t impressed. He’s called the merger a “desperate move” and doubts it’ll work, arguing the companies lack complementary strengths (The Times).
Sure, Ghosn has a bit of a grudge—after all, his relationship with Nissan ended about as well as a blown head gasket. Accused of several financial crimes, including underreporting his compensation by millions of dollars over several years and misusing Nissan's corporate funds for personal expenses, such as throwing an opulent party at the Palace of Versailles. After being arrested in Japan, Ghosn pulled off one of the most cinematic escapes in corporate history. With the help of a former U.S. Special Forces soldier he escaped Japan by stowing away in a giant audio equipment case and fleeing a corporate jet through Turkey, and into Lebanon—probably humming the Mission Impossible soundtrack the whole way.
But his point about potential inefficiencies isn’t unfounded. Whether it’s fair criticism or just sour grapes is up for debate.
Facing the EV Race and China’s Rise
Once upon a time, Nissan’s Leaf was the cool kid in the EV world. But while Tesla was revolutionizing the market and BYD was pumping out affordable EVs, Nissan seemed content to sit back and admire its trophy from 2010. By 2024, the Leaf was more vintage curiosity than industry leader (WSJ).
Honda hasn’t been much better in the EV race. This merger is their joint attempt to play catch-up, pooling resources to challenge today’s heavyweights. It’s a bit like two kids teaming up to build the ultimate science fair volcano—they’ve got potential, but the competition’s already at robotics level.
If this merger had a final boss, it would be China’s EV manufacturers. In 2023, China overtook Japan as the world’s largest auto exporter, thanks to brands like BYD cranking out high-tech EVs faster than Nissan could update the Leaf (Reuters).
ホンダ！日産！合体せよ！メガコープを形成するんだ! ("Honda! Nissan! Gattai seyo! MegaCorp o keisei suru nda!")
"Honda! Nissan! Combine to Form ..... MegaCorp!"
Don’t forget the invisible joystick controlling this MegaZord formation. The Japanese government has been mashing the “merge” button since 2019, quietly nudging its automakers together like reluctant Power Rangers, all while eyeing China’s rise and muttering, “We need a bigger robot.” (Reuters). This merger isn’t just about Honda and Nissan’s survival—it’s about keeping Japan competitive on the global stage. The merger will create the world's 3rd largest car manufacturer - which by definition is no small thing.
For Honda and Nissan, this merger isn’t just a smart business move—it’s survival. If they don’t adapt now, their market share could get eaten faster than Pac-Man munching dots.
This merger is as much about national strategy as it is about corporate survival. It’s not just Honda and Nissan’s reputations on the line—it’s Japan’s, too.
So, Will It Work?
The jury’s still out. Investors are hopeful, analysts are cautiously optimistic, and skeptics like Carlos Ghosn are sharpening their knives. One thing’s for sure: the stakes couldn’t be higher. If Honda and Nissan can pull this off, they could redefine the global EV landscape. If not, well… there’s always a “what went wrong” Netflix documentary waiting to be made.
If you don't want to wait for that special, I would recommend Alex Martini's Youtube video on the matter - well researched and comprehensive!
And why do I care? What’s in It for JDM Fans in Canada?
Here’s where it gets personal for us JDM enthusiasts. For now, this means very little for us. We'll only see the JDM importing results of this 15 years down the road. With Honda, Nissan, and Mitsubishi joining forces, we might see fewer quirky Japan-only models making their way over here. Those weird Kei trucks and obscure trims we love? They might become even rarer treasures.
It also might lead to the disappearance of local Nissan/Mistsubishi dealerships which have those ever increasingly rare mechanics who are familiar/capable of dealing with JDM variant vehicles.
On the flip side, the merger could bring a new wave of JDM EVs to Canada, blending (then) futuristic tech with that unmistakable Japanese design flair. Imagine importing a Honda-Nissan EV that’s as cool as it is eco-friendly. The future of JDM in Canada might look a little different, but it’s far from over.
And there you have it: a merger born of necessity, fueled by ambition, and loaded with potential. Whether it’s a turning point or just another bump in the road, one thing’s for sure—it’s going to make one heck of a story. Buckle up, folks.
~ DREAM
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