Nissan By no means Approached Toyota For Merger Plan: Toyota Chairman

Because the automotive {industry} braces for an unsure future, consolidation of massive gamers who have been as soon as vicious rivals is all however inevitable. But earlier than a battered and diminished Nissan sought out a companion to merge with, its largest historic competitor Toyota was by no means on the menu.

Talking at CES 2025 in Las Vegas right this moment, Toyota Chairman Akio Toyoda addressed the looming consolidation dealing with two large elements of the Japanese auto {industry}: Honda and Nissan. However he confirmed that his firm wasn’t concerned in such talks. 

“[Nissan] didn’t strategy Toyota about any mergers,” Toyoda mentioned by way of an interpreter. “However even when they’d thought-about that, it could undoubtedly be violating anti-monopoly legal guidelines. So possibly they could have thought-about it, however determined to not due to that.” 

Toyoda implied that the Japanese authorities—and maybe even different governments in locations the place these international corporations function—may need balked at a union between two direct rivals who, for a very long time, have been related in measurement and scope. As a substitute, Nissan and Honda are set to start merger talks this 12 months, with a mutual aim of mixing by late summer time 2026. 

Toyoda got here to CES to advertise Woven Metropolis, the automaker’s upcoming live-in startup incubator located on the base of Mount Fuji in Japan. However the chairman, who served for greater than a decade because the CEO of the corporate his grandfather based, additionally weighed in on the consolidation wave dealing with the Japanese auto {industry} amid the push towards electrical and software-defined autos whereas China’s automotive sector races forward. 

Photograph by: InsideEVs

Toyota Woven Metropolis Briefing, CES 2025

“If I knew what was going to occur from right here, I believe I would change into very wealthy by making some investments,” Toyoda joked. “However we’re seeing an unclear future. We do not know what’s going to occur. It is fairly an fascinating, difficult period to be in administration.”

InsideEVs has requested a remark from Nissan. We’ll replace this story if we get one.

Japan’s largest automakers all discover themselves in very completely different locations as they go into 2025.

Toyota stays handsomely worthwhile and the world’s high automotive firm by gross sales quantity. However it’s removed from resistant to {industry} headwinds, particularly the place the rise of China’s auto {industry} is anxious. Whereas it stays the dominant pressure in hybrid automobiles, Toyota is basically thought-about late to the sport with absolutely electrical automobiles, and it is shortly shedding market share in once-extremely worthwhile China. Toyota can be scrambling to make amends for the software program entrance as increasingly more gamers search to emulate Tesla, Rivian and the Chinese language automakers for his or her capacity to improve automobiles with new tech options over time and cost drivers for that privilege. 

Photograph by: Nissan

Honda Nissan Mitsubishi Partnership

In the meantime, Honda can be making a living and doing properly in gross sales, however appears to be realizing it must catch up extra shortly on the high-tech EV entrance—therefore a collection of bulletins about new electrical fashions and upcoming tech later this week at CES. However whereas Nissan was lengthy Japan’s no. 2 automaker, it has sagged in gross sales and income for years now, with executives warning final 12 months that it in all probability solely has 12-14 months to outlive with out a lifeline of some kind. That lifeline is anticipated to be Honda now in a deliberate union that may create the world’s third-largest automaker by quantity. Mitsubishi can be in talks with the 2 and plenty of industry-watchers consider it is prone to be a part of in some unspecified time in the future as properly. 

In the meantime, Toyota appears to be forging nearer ties with just a few smaller corporations it has numerous partnerships with already: Subaru, Mazda and Suzuki. However Toyoda warned that the sport is not about duking it out with different gamers for percentages of the identical automotive market because it was once. Now, it is much less about incremental change and extra about complete transformation. 

“For Toyota, what I can say is that after we take into consideration the automotive {industry}, in all probability up to now we have been in competitors between automotive corporations about how we will develop quantity,” he mentioned. “However in all probability that competitors, the character of the competitors, is altering. It is 1736214033 extra a contest about how the businesses can change the autos themselves—to vary the automobiles.” 

As for the Nissan-Honda merger, Toyoda mentioned he is really trying ahead to what comes out of it—and the way to compete in opposition to these automobiles. 

“For me, it is fairly thrilling, as a result of I am trying ahead to [seeing] how they will cooperate between one another and the way they will develop extra aggressive merchandise,” Toyoda mentioned. “If these sorts of thrilling merchandise, aggressive merchandise, come out [of this merger], I believe it is a good factor for the competitors not solely in Japan however for the world.” 

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