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Reports claim Mitsubishi will sit out the proposed merger between two of Japan's top car brands – but it's unclear if it will also cut its current ties to Nissan and go alone.
The proposed merger between Honda and Nissan will not include Mitsubishi – which will instead remain an independent company – according to a report out of Japan.
It is despite the close relationship between Nissan and Mitsubishi today, which sees the former own about a quarter of the latter – and the pair share underpinnings and technology across key models.
Japanese newspaper Yomiuri – via industry journal Automotive News – claims Mitsubishi has elected to sit out the merger and remain independent, citing unnamed sources.
The company stated at the announcement of merger talks in December it would decide by the end of January 2025 whether to join the Nissan-Honda merger, which if given the green light, is planned to be completed by August 2026.
A statement reportedly issued by Mitsubishi to overseas media said the company is still considering its options, and that the Japanese newspaper's information "was not released by Mitsubishi."
Nissan is the biggest stakeholder in Mitsubishi Motors, though the former announced in November it would sell part of its 34 per cent stake in the latter – specifically 149 million of its 506 million shares – back to the brand known for models like Triton and Pajero.
It is unclear what sitting out of the Honda-Nissan merger would mean for the future of the Mitsubishi vehicle range – and if Nissan will sell the rest of its stake before tying the knot with Honda.
A number of its current models share underpinnings and parts with Nissans – in particular the Mitsubishi Outlander and Nissan X-Trail SUVs, as well as the new Mitsubishi Triton and next Nissan Navara utes – though the former pair are made in different factories.
If Mitsubishi parts ways entirely – and does not maintain a relationship with the merged Nissan-Honda company – it would be left increasingly vulnerable in a car market contending with the rise of Chinese brands and move to electric cars.
With no other car brand with which to share development costs, Mitsubishi would need to amortise its investments across its annual sales of less than 1 million vehicles (789,000 in 2023).
In contrast, Nissan and Honda combined sell more than 7.2 million cars annually.
The Nissan-Honda merger may still become the third-largest automotive group in the world, ahead of Hyundai, Genesis and Kia's 7 million sales in 2023, but behind the Volkswagen Group (about 9 million) and the Toyota group (about 11 million).
In 2016, Mitsubishi became the third member of a technical alliance between Nissan and Renault – established in 1999 – and all three share development resources, technology and models, including Australia's new Mitsubishi ASX that is a rebadged Renault.
Confirmation of Mitsubishi's decision to sit out the merger may come early next week when it reports its latest round of financial results on 3 February.
Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines at a young age, to growing up around performance vehicles in a car-loving family. Highly Commended - Young Writer of the Year 2024 (Under 30) Rising Star Journalist, 2024 Winner Scoop of The Year - 2024 Winner
