Honda, Nissan Motors, and Mitsubishi Motors. Japan's leading automakers have begun to move toward a business integration. The presidents of each company held a press conference on the 23rd and officially announced that Honda and Nissan will begin discussions toward a business integration. If the integration is realized, it will become the third largest auto group in the world, but will the restructuring for survival be successful? ■ "30 trillion yen in sales" "Leading the world" The three presidents held a press conference together. The opening remarks were made by Honda's President Mibe. Honda President Mibe Toshihiro: "By integrating the two companies, we have reaffirmed that the possibility of synergy effects from the chemical reactions that will be created in all areas is greater than expected. We believe that it is possible to become a leading company that creates new value in mobility, with total sales of more than 30 trillion yen and operating profits of more than 3 trillion yen, which is the world's top level." The operating profit of 3 trillion yen will exceed the combined figures of Honda and Nissan for the last fiscal year. "One plus one equals more than two." This may be said to be the purpose of this integration. The roadmap is to finalize the direction in one month, and conclude the final agreement six months later. A year after that, the newly established holding company will be listed and the project will start. It is said that the answer as to whether Mitsubishi Motors will participate will be announced next month. Honda President Toshihiro Mibe: "Competitors are evolving quickly, and their cars are being released more frequently. The speed of evolution is also incredibly fast, and I believe that it is evolving at an even more incredible speed than what existing car companies have done in the past. How can we catch up and surpass them? Ultimately, we want to lead the world once again." (Q. The automobile market is changing rapidly, and it is difficult to predict what will be the main players or best-selling cars, but what do you think the automobile market will be like in 10 or 20 years?) "It probably won't take 10 or 20 years. If we don't have the power to fight ourselves by around the 2030s, we won't be able to compete, and that's what this is all about." ■The shadow of foreign capital behind the acceleration... It is unusual for large companies to merge so quickly. It has been reported that the presence of a certain Taiwanese company played a role in the two companies' rapprochement. This is the move by Taiwan's major electronics manufacturer Hon Hai Precision Industry to acquire Nissan shares. Taiwan's Central News Agency: "Foxconn has been planning to acquire a portion of Nissan's shares for some time, with Chairman Liu Yang-wei leading the move, with Seki handling the practical aspects. Seki directly conveyed his intention to acquire the shares to Nissan, but Nissan reportedly did not agree." Seki is Seki Jun, who was once Nissan's No. 3 and was seen as a possible candidate to become the next president. Since last year, he has been serving as Chief Strategy Officer for the electric vehicle business at Foxconn. Foreign media say that Seki's use of his connections at his old company to try to acquire Nissan's shares has caused a sense of crisis that Nissan may be taken over. Bloomberg: "Foxconn had approached Nissan with the aim of acquiring the entire company. Negotiations between Nissan and Honda have accelerated following Foxconn's approach." At the press conference, Foxconn spoke about the reports surrounding Foxconn... Nissan Motor President Makoto Uchida (Q: Did Hon Hai Precision Industry's takeover proposal for Nissan have any influence?) "I've seen various reports, but there is absolutely no evidence of such an approach to us." Honda President Toshihiro Mibe: "We only know about it from reading the reports. As Honda Motor Co., Ltd., we have no idea what Hon Hai is doing." It was also announced that Honda will appoint the first president of the new holding company. It seems that the change will be led by Honda. ■ Ghosn Defendant Questions "Complementarity" Was he aware of this day? Carlos Ghosn, who once managed Nissan, held an online press conference from his hideout. Former Nissan Chairman Carlos Ghosn: "I don't see any mutual complementarity between Honda and Nissan. They will certainly struggle against Chinese manufacturers and Tesla, and Toyota will also stand in their way, but Toyota has a much better chance of success. You can't predict the future, but the seeds of conflict and trouble have already been sown." ■ Emphasis on "synergy" - also tough aspects... At the press conference, both companies emphasized the synergy, but at the same time, they acknowledged the tough aspects. Honda President Toshihiro Mibe: "The maximum synergy effect will be realized after 2030. If Nissan and Honda cannot exist as two independent companies, this business integration consideration will not be realized." Nissan President Makoto Uchida: "We will regenerate Nissan into a company that can make a decent profit. It is my responsibility to pave the way for that." They aim to reach a final agreement in June next year, but will the integration be realized? We asked economic journalist Hisao Inoue, who is familiar with the automobile industry. Economic journalist Inoue Hisao said, "The key is how Honda evaluates the business restructuring plan presented by Nissan. The issue going forward is how to adjust the overlap in sales networks and production bases. Depending on that, it is entirely possible that the integration will not be realized." He also points out that the key lies in the actions of Foxconn, which has reportedly expressed an intention to acquire Nissan. Economic journalist Inoue Hisao said, "If Foxconn officially proposes an acquisition, Honda will have to convince shareholders that a business integration with Honda is more rational than with Foxconn. Depending on the outcome, the future of this integration may become unclear." (C) CABLE NEWS NETWORK 2024 [TV Asahi news] https://news.tv-asahi.co.jp