#194 Ho-Ni-Mi drives into the future
On December 15, 2024, Honda, Nissan, and Mitsubishi—three of Japan’s leading automakers—announced a historic intention to merge, creating a unified front in the rapidly evolving automotive industry. This decision stunned industry experts and raised crucial questions about the motivations and implications of such a bold move. As the industry undergoes a seismic transformation driven by the shift toward electric vehicles (EVs), the merger seeks to leverage each company’s strengths. Honda brings expertise in hybrid and hydrogen technologies, Nissan contributes its leadership in EVs with models like the Nissan Leaf, and Mitsubishi adds value with its renowned experience in plug-in hybrid vehicles (PHEVs) and its strong presence in Southeast Asia. Together, the trio aims to accelerate innovation, reduce costs, and compete more effectively in the increasingly competitive market. Another critical driver of the merger is intensifying global competition. Giants like Toyota, Volkswagen, and Tesla continue to dominate, while newcomers in EV manufacturing pose additional threats. By joining forces, Honda, Nissan, and Mitsubishi aspire to fortify their market positions through a unified strategy, enabling them to secure a larger global market share. Additionally, the companies face common challenges, such as supply chain disruptions, rising production costs, and a slowing global economy. The merger offers an opportunity to consolidate operations, streamline processes, and stabilize their financial positions. Despite these advantages, significant challenges lie ahead. Integrating three distinct corporate cultures—Honda’s focus on innovation, Nissan’s efficiency-driven approach, and Mitsubishi’s regional market strengths—will require thoughtful planning. Maintaining the unique identity of each brand while building a cohesive organizational structure is crucial. Additionally, employee and stakeholder resistance may arise, driven by uncertainties surrounding the merger’s impact.
If you were a leader at Honda, Nissan, or Mitsubishi, what would you prioritize to ensure the success of this three-way merger? How can the companies effectively balance cultural differences, maintain their individual brand identities, and navigate stakeholder concerns? In the face of current industry challenges, do you believe this merger is the optimal strategy for these companies?
Case written by Agassy Manoukian, American University of Armenia
March 9, 2025 @ 9:01 am
This story/ post has changed quite a bit in recent months.
The collapse of the Honda-Nissan-Mitsubishi merger isn’t all that surprising. Merging car companies is incredibly difficult, even when they’re from the same country. Each has its own culture, way of working, and vision for the future. Even in Japan, where business culture values harmony, that doesn’t mean companies can just blend together smoothly.
I see the same thing in the big German OEM I work with. Even though its sub-brands have been part of the same group for years, they still operate differently, and there’s always tension between them. A merger might look good on paper, but in reality, it’s rarely that simple.
That doesn’t mean automakers can’t work together. Ford and VW have partnered on projects without merging, and now we’re seeing more joint ventures, like VW teaming up with Rivian. Instead of forcing companies together, these kinds of partnerships let them share technology, cut costs, and stay competitive—without losing what makes them unique. Maybe that’s the smarter way forward.