According to Teikoku Databank by the 24th, there are over 9,000 domestic companies, including parts manufacturers, that have business relationships with both Honda and Nissan Motor, which have announced they are entering into discussions about a business integration. In the memorandum of understanding, the two companies stated that they would work to “optimize the supply chain,” which may lead to accelerated restructuring and integration of subcontractors and other entities in the future. According to Teikoku Data, the automotive industry has a broad base, with the two companies’ supply chains numbering more than 40,000 companies in total. Of these, 9,242 companies overlap, with 4,507 companies (about half) having sales of between 100 million yen and 1 billion yen, and 1,752 companies (about 20%) having sales of less than 100 million yen. In addition to rising prices and labor shortages, subcontractors are also struggling to survive as the global development race over electric vehicles (EVs) and other technologies accelerates. If Honda and Nissan go ahead with their business integration, they will be forced to standardize their standards and review their contracts, which could lead to more mergers and acquisitions (M&A). At a press conference on the 23rd, Honda President Toshihiro Mibe emphasized, “We cannot proceed with (optimization) until we have had various discussions and our (business partners) are satisfied.” They indicated their intention to continue careful dialogue while taking into consideration the circumstances of each company. Teikoku Data points out that “manufacturers are required to take into consideration the market environment, comply with the Subcontracting Act, and establish fair trading conditions.” Jiji Press, Economic Department, Published on December 24, 2024 at 9:01pm.
Maybe it’s better to quit. Nissan is already bankrupt. It’s better to let it go bankrupt. It will drag everyone down and everyone will go down together. It’s pointless.
They’re only going to set up a new company in a year and a half, and they’re saying with a straight face that they’ll keep each company’s brand. That’s not going to lead to any reforms or improvements to each company. In the end, it’s obvious that they’ll just lose their competitive edge as time passes, dragged down by anti-Nissan forces. The only way to fix this is to consolidate many of the Nissan-affiliated companies.
Even if there are overlaps, Nissan cars aren’t selling, so parts aren’t selling either. Nissan’s parts store is on the verge of bankruptcy, so they’ll have no choice but to ask Honda’s parts store for some work.
If a company does business with both, it means it’s important to both, so it’s likely that business will continue even after the merger. However, if the company isn’t a parts manufacturer, there’s a chance that business will be cut in half.
In fact, it would be beneficial to have overlapping products because they would be able to deliver to both companies at the same standard right away. If you only do business with one company, you’ll probably get cut off unless your products are exceptionally good.
>>51 I hope they’ll be the same standard I’m curious to see what happens to the wheel nuts I think how they deal with this will give us a sense of how serious they are about the integration On the other hand, I think it’ll stick around forever.
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