Suranjana Tiwari
Appearances
Global News Podcast
Man detained after Russian general's assassination
These discussions were between the two auto giants were first reported by Japan's Nikkei newspaper. They're understood to be in the very early stages and there's no guarantee that a deal will be struck.
Global News Podcast
Man detained after Russian general's assassination
But really, this is the clearest sign yet of some sort of reorganisation in Japan's auto industry in the face of immense challenges posed by car makers like Tesla, but also Chinese manufacturers of electric vehicles in particular. And this isn't the first time that the two manufacturers have collaborated.
Global News Podcast
Man detained after Russian general's assassination
In fact, they agreed to collaborate on some aspects of making electric vehicles with that announcement coming back in March. But these talks seem to be around deepening those ties. The two car makers are Japan's number two and number three automakers. And this would create a formidable domestic rival to Toyota, which is, of course, Japan's largest automaker.
Global News Podcast
Man detained after Russian general's assassination
That's right. I mean, some analysts that we spoke to today did say this is very good news because both companies are facing significant challenges. And we saw on the stock market that there was a great deal of optimism around a potential merger. Again, it's not confirmed it is a potential merger yet.
Global News Podcast
Man detained after Russian general's assassination
shares in Nissan surged more than 20% in Tokyo trade before having to be suspended, whereas Honda's shares were actually down 1.6%. And that gives us some indication about the optimism around the smaller company, which is Nissan, and how a potential merger might actually change things for Nissan. As you mentioned, A merger would allow them to make some more and perhaps better investments.
Global News Podcast
Man detained after Russian general's assassination
It would also reduce costs. But of course, there are always issues like having to make job cuts in these situations as well. Most of all, aside from the competition, the state of the global economy is also a real concern. Borrowing costs have been high for both these car makers and demand has been down in both Europe and the US.
Global News Podcast
Man detained after Russian general's assassination
And one analyst we spoke to said that even if a merger comes through, these companies are facing so many challenges, it might be a little too late. He described it as just rearranging the deck chairs on the Titanic.