Bloomberg Talks Former Nissan President Carlos Ghosn Talks Nissan-Honda Merger
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Dec 20, 2024 Carlos Ghosn, former chairman and CEO of Renault Nissan Mitsubishi Alliance, discusses the intricate dynamics of a potential Nissan-Honda merger. He highlights the limited synergies and the significant political and economic pressures involved. Ghosn also addresses the stagnation within the Renault-Nissan alliance compared to the rapid growth of the Chinese auto market. Furthermore, he critiques trade disruptions affecting the industry and emphasizes the necessity for companies to innovate in their electric vehicle strategies to compete globally.
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Desperate Merger?
- The potential Nissan-Honda merger seems like a desperate move by Nissan, driven by their struggles.
- Synergies are hard to find, as both companies operate in the same markets with similar products and brands.
METI's Influence
- The Japanese Ministry of Economy, Trade, and Industry (METI) likely influenced the merger talks, prioritizing control over performance.
- Nissan's poor performance in recent years suggests a panic mode within the company.
Synergies and Challenges
- Short-term synergies between Nissan and Honda are limited, with purchasing power being the primary benefit.
- Long-term, they could save on future investments by sharing technology.