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Why the Nissan-Honda merger is a ‘terrible thought bubble’

Why the Nissan-Honda merger is a ‘terrible thought bubble’

The tie-up would create the world’s third-largest car maker by sales. But the deal appears driven more by desperation than strategic thinking.

A Nissan Ariya electric SUV at the Japan Mobility Show in Chiba. Bloomberg

Jessica SierNorth Asia correspondent

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Tokyo | Carlos Ghosn knows a thing or two about mergers in the automotive sector. In 1999, he helped steer the tie-up between France’s Renault and Nissan of Japan.

Now, he says the proposed merger between Honda and Nissan – which does not yet have a price tag attached – doesn’t add up.

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Jessica Sier
Jessica SierNorth Asia correspondentJessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com

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Original URL: https://www.afr.com/world/asia/why-the-nissan-honda-merger-is-a-terrible-thought-bubble-20241220-p5kzwq