The potential merger could form the world's third-largest auto group with an annual production of 7.4 million vehicles.

In December 2024, reports emerged that two of Japan's automotive juggernauts are looking to form a merger akin to the automotive equivalent of a 'dream team.' On Dec. 23, the leaders of Japanese automakers Nissan (NSANY) and Honda (HMC) announced that they intend to merge under a holding company in an effort to stay competitive against its rivals in a world shifting towards electric vehicle adoption.

Despite an initial MoU involving Mitsubishi in talks of "participation, involvement, and synergy sharing" in the Honda-Nissan merger, it now appears the company wants to go solo. The report indicates Mitsubishi had considered joining the new holding company with Honda and Nissan but has now opted out.

Mitsubishi Motors Corp. won’t be a part of Honda Motor Co. and Nissan Motor Co.’s plans to combine their companies under a holding company, the Yomiuri reported.

The problem is there is no likely outcome that would leave both companies and their employees better off than they are today.

The mooted Honda Nissan merger and the fallout from leadership change at Stellantis suggests the auto industry must brace for turmoil, where size is a survival necessity.

Shares in Mitsubishi plunged nearly nine percent Friday after a report said it might not join a planned merger between industry giants Honda and Nissan. Honda, and its struggling rival Nissan, agreed last month to launch talks on the tie-up, which is seen as an attempt to catch up with Chinese rivals and Tesla on electric vehicles.

Mitsubishi Motors Corp. is considering not joining the planned merger between Nissan Motor Co. and Honda Motor Co. and instead focusi

Honda and Nissan announced merger plans in December 2024, and the process has been progressing as per schedule. The merger will also include Mitsubishi, and both companies aim to reach a definitive agreement by June 2025.

As Honda and Nissan negotiate the terms of a possible merger, we take a speculative look at what new vehicles could spawn from the unprecedented collaboration.