According to a Reuters report citing unnamed sources, Mitsubishi Motors is contemplating withdrawing from the merger between Nissan Motor and Honda Motor.
The company intends to retain its independent listing while continuing to maintain close cooperation with the two Japanese automakers.
The decision to opt out of the merger, anticipated this month as the merger details progressed, had a significant impact on the company’s stocks, leading to a more than 6% decline in early Friday trading.
Honda and Nissan announced plans in December to form a joint holding company to establish the world’s third-largest carmaker, with an annual production capacity of 7.4 million vehicles. The merger is set to be completed by June 2025 with implementation scheduled for August 2026.
Mitsubishi, in a statement acknowledging reports on the company’s stance, reiterated that there are no concrete decisions on the matter, and highlighted its ongoing exploration of different possibilities.
As reported by the Yomiuri Shimbun newspaper, Mitsubishi’s worries pertain to its influence in the decision within the proposed holding company, as the company size is relatively smaller compared to the other two.
Meanwhile, the company intends to focus on expansion in Southeast Asia while retaining its independent framework in the coming years.
