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Honda Nissan merger - part 2
Nissan and Honda are considering a possible merger in the automotive world, which has generated divergent opinions. Carlos Ghosn, former boss of Nissan, has shared his critical opinion about this alliance in an interview with Bloomberg. Ghosn argues that he does not see a pragmatic logic in the agreement, since he considers that there are not many synergies between the two companies. According to him, they are in the same markets, have similar products and very similar brands.
Ghosn also believes that Japan's Ministry of Economy, Trade and Industry (METI) is promoting this merger to strengthen the Japanese economy, although Honda does not like the idea. Although he recognizes the influence of METI in Japan, Ghosn does not see an industrial logic behind this alliance and believes that control is prioritized over performance.
Ghosn, known for his daring escape from Japan while awaiting trial on financial charges at Nissan, is unsurprisingly critical of the company in his interview. He believes that Nissan's results in recent years are not a good testament to the team's strengths.
Although neither Nissan nor Honda have made official statements about the possible merger, the brands have been collaborating for some months. However, Ghosn highlights that a merger would go beyond sharing ideas and would be a challenge for both companies. He points out that Honda is strong in engineering and Nissan takes pride in its own engineering, which would trigger a battle to decide which technologies the new company would adopt.
In short, Carlos Ghosn is skeptical of a possible merger between Nissan and Honda, arguing that there are no complementarities between the two companies and that the METI drive is based on economic control rather than performance. In addition, he highlights that the battles related to the merger would focus on the choice of technologies to adopt due to the engineering competencies of both companies.
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Source:
https://www.motor1.com/news/745186/ghosn-nissan-honda-partnership-desperate-move/
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