Tokyo, Japan:
Hoda’s shares rose on Wednesday as the Japanese media said that the automeker had proposed to make its struggling rival Nissan an assistant – with some reports, saying that the step could make the magic of the end of their merger talks. Companies agreed to start a discussion on joining the forces to create the world’s third largest automaker in December, which was seen as a bid to catch with Tesla and Chinese electric vehicle firms.
The CEO of Honda had insisted at the time that it was not a bailout for Nissan, which announced a reduction in thousands of jobs after reporting a decline of 93 percent in half net profit last year.
Japanese public broadcaster NHK and other media outlets said on Tuesday that Honda was offering to acquire Nissan shares and make it aids instead of a previous plan to integrate under a new holding company.
The report said that the proposal is expected to face fierce opposition from Nissan over concerns about their autonomy.
Honda’s shares jumped more than four percent in Wednesday morning trade. Nissan also increased by more than seven percent, but gained profit and was 3.3 percent above the break.
A Honda spokesman told AFP that no official announcement was made and refused to comment further.
Nissan said that the discussion of the merger was “running”, saying that “we want to finalize our direction by mid -February and will announce it at that time.”
The Asahi newspaper said that the two companies will soon hold separate board meetings, in which there will be separate meetings of the board to discuss issues, including the possibility of calling the talks.
Yomi Daily, citing an anonymous Nissan executive, said that the merger was now “almost impossible”, with difficulties in satisfying the shareholders on both sides.
Consumer expenses and tough competition in many markets are making life difficult for many vehicle manufacturers.
Trade for foreign brands in China has been particularly difficult, where electric vehicle manufacturers such as byd are moving forward because demand for low pollution vehicles increases.
Honda and Nissan Toyota are followed by Japan’s number two and three vehicle manufacturers.
He already agreed to detect a partnership on components between EV software and other technologies last year, an initiative involved by Mitsubishi Motors in August.
But the head of the small automaker said this week that it would take a final decision whether to attend the Honda-Nisan merger talks in mid-February or later.
(Tagstotransite) Honda (T) Nissan (T) Honda Share
