{"id":158962,"date":"2025-01-23T07:35:49","date_gmt":"2025-01-23T07:35:49","guid":{"rendered":"http:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/briefcase-honda-nissan-merger-a-potential-game-changer.html"},"modified":"2025-01-23T07:35:49","modified_gmt":"2025-01-23T07:35:49","slug":"briefcase-honda-nissan-merger-a-potential-game-changer","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2025\/01\/23\/briefcase-honda-nissan-merger-a-potential-game-changer\/","title":{"rendered":"BriefCASE: Honda-Nissan merger: A potential game changer"},"content":{"rendered":"

By Amit Panday<\/p>\n

In a turbulent automotive industry, Japanese automakers Honda
\nand Nissan have embarked on a bold merger. If executed well, the
\ndeal will allow the merged entity to harness synergies and fortify
\nits market position, but the path is fraught with challenges. The
\nmarch toward electrification and software-defined vehicles \u2014
\nintensified by mainland Chinese original equipment manufacturers
\nwith their high-tech yet competitively priced models \u2014 demands
\nsubstantial investment from legacy OEMs in cutting-edge battery
\ntechnology, next-generation vehicle platforms and smart production
\nfacilities.<\/p>\n

Merger could boost electrification efforts<\/h2>\n

The merger is expected to enable increased production of hybrid
\nelectric vehicles \u2014 driven by Honda's existing hybrid
\npropulsion systems \u2014 and battery-electric vehicles by 2030.
\nS&amp;P Global Mobility estimates that Honda-Nissan's total
\nbattery-cell requirement could reach 1 billion cells by 2036 from
\nless than 200 million cells in 2024. The data suggests this would
\ntranslate into a combined battery capacity of about 128 GWh by 2030
\nand 325 GWh by 2036.<\/p>\n

In North America, Nissan stands to benefit from Honda's
\nrelatively mature battery supply chains. For example, Honda has
\npartnered with LG Energy Solution to establish a 40 GWh gigafactory
\nin Ohio, set to begin production in 2025. Honda has also formed
\nstrategic alliances with recycling firms such as Ascend Elements
\nand Cirba Solutions. In Europe, a new Nissan battery factory in
\nSunderland, UK, operated by Envision AESC, is also scheduled to
\nstart operations this year. It will have a capacity of 12 GWh and
\nproduce enough batteries to power 100,000 electric vehicles
\nannually. Nissan also plans to introduce cobalt-free technology to
\nlower the cost of EV batteries by 65% by fiscal year 2028.<\/p>\n

In China, Honda brought together its joint venture partners,
\nDongfeng Motor Group and GAC Motor, to establish HDG (Beijing)
\nTrading Service for sourcing batteries and exploring battery
\nrecycling. The three-way joint venture aims to bulk-source
\nbatteries from CATL, driving down costs and improving its sourcing
\nstrategy. Notably, CATL is building a 50 GWh battery plant in
\nYichun, China, to supply batteries to HDG (Beijing) Trading
\nService.<\/p>\n

In its home market of Japan, Nissan last year secured a
\ncertification from the Ministry of Economy, Trade and Industry to
\ndevelop and mass-produce
\nlithium-iron-phosphate<\/a> batteries. These batteries will be
\ninstalled in electric minivehicles from fiscal year 2028.<\/p>\n

Honda and Nissan are also advancing solid-state battery
\ntechnology independently, which could lead to valuable synergies
\nand accelerate the commercialization of this promising
\ntechnology.<\/p>\n

Supply chain consolidation and challenges<\/h2>\n

In a merger of this size, a supply chain shake-up is to be
\nexpected. Honda-Nissan intends to streamline purchasing operations
\nand source common parts from the same supply chain. Suppliers
\nforesee increased pressure to meet this higher volume because of
\nvehicle platform standardization across various product segments.
\nBoth OEMs have thousands of suppliers in their individual supply
\nchains globally, most of them in tier 2 and tier 3. Common tier 1
\nsuppliers such as Denso, Toyoda Gosei and Bosch are expected to
\nbenefit from increased order volumes, streamlined operations and
\nstandardized processes.<\/p>\n

On paper, Honda-Nissan looks like a relatively straightforward
\nmerger due to product and geographical overlap. However, a complex
\nweb of relationships and technology partnerships have to be
\ndisentangled and understood and solution pathways must be chosen
\nbefore any synergistic benefits will materialize.<\/p>\n

Economies of scale can be difficult to realize in a supply base
\nas well. High-volume platforms may offer tantalizing prospects for
\ncost savings, but the reality may be different. Regional suppliers
\nthat have forged relationships with predecessor entities often find
\nthey lack the capacity to support a higher-volume or more
\ngeographically diverse approach.<\/p>\n

That said, the automotive sector is entering a new era, with the
\nold hegemony weakened and threatened like never before. In markets
\nwhere total industry volume is flatlining and still has not
\nrecovered to pre-COVID-19 levels, structural tensions abound. In
\nthis light, the timing of the merger seems right.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Amit PandayIn a turbulent automotive industry, Japanese automakers Honda
\nand Nissan have embarked on a bold merger. If executed well, the
\ndeal will allow the merged entity to harness synergies and fortify
\nits market position, but the path is fraught…<\/p>\n","protected":false},"author":479,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-container-style":"default","site-container-layout":"default","site-sidebar-layout":"default","disable-article-header":"default","disable-site-header":"default","disable-site-footer":"default","disable-content-area-spacing":"default","footnotes":""},"categories":[3267],"tags":[61,122,127,129,124,128,125,132,131,133,126,130,123,66,94,88,97,56,64,65,60,3344,3351,3357,3360,3335,3340,3362,112,3353,40,75,95,3350,3352,3356,3343,3359,3339,3345,3334,3341,104,3354,33,120,3358,3349,3337,3348,105,101,98,115,30,29,41,86,3342,3361,70,69,68,72,71,26,118,108,87,3355,46,55,48,52,54,51,50,83,3338,62,58,57,3336,109,35,3346,59,63,85,79,82,96,80,27,81,114,44,42,43,45,38,39,110,117,100,111,116,3300,73,89,90,92,91,93,84,78,37,102,34,36,77,67,74,99,113,3347,119,28,121,32,47,49,53,103,31,76],"class_list":["post-158962","post","type-post","status-publish","format-standard","hentry","category-car-or-automobile","tag-airpods","tag-anime","tag-anime-characters","tag-anime-cosplay","tag-anime-edits","tag-anime-merchandise","tag-anime-movies","tag-anime-news","tag-anime-recommendations","tag-anime-reviews","tag-anime-series","tag-anime-streaming","tag-animes","tag-app-store","tag-app-store-samsung","tag-appgallery","tag-appgallery-oneplus","tag-apple","tag-apple-music","tag-apple-tv","tag-apple-watch","tag-auto-financing-guide","tag-automobile-industry-news","tag-automobile-laws-and-regulations","tag-automobile-shows-and-expos","tag-automobile-specifications","tag-automobile-technology","tag-autonomous-vehicles","tag-bbc-sport","tag-best-cars-for-long-drives","tag-best-mobile-games","tag-bixby","tag-bixby-xiaomi","tag-car-accessories","tag-car-comparison","tag-car-customization-ideas","tag-car-insurance-advice","tag-car-interior-design-ideas","tag-car-maintenance-tips","tag-car-resale-value","tag-car-reviews","tag-car-safety-features","tag-champions-league","tag-city-cars","tag-cyberpunk","tag-cyberpunk-2077","tag-driving-tips-and-tricks","tag-eco-friendly-cars","tag-electric-vehicles","tag-family-cars","tag-fantasy-football","tag-fifa","tag-football","tag-formula-1","tag-fortnite","tag-free-fire","tag-free-mobile-games","tag-freebuds-pro","tag-fuel-efficiency-tips","tag-future-of-automobiles","tag-galaxy-a52","tag-galaxy-note-20","tag-galaxy-s21","tag-galaxy-watch-4","tag-galaxy-z-fold-3","tag-game","tag-games","tag-golf","tag-harmonyos","tag-highway-cars","tag-how-to-backup-iphone","tag-how-to-factory-reset-iphone","tag-how-to-reset-iphone","tag-how-to-restore-iphone","tag-how-to-unlock-iphone","tag-how-to-unlock-iphone-5","tag-how-to-unlock-iphone-6","tag-huawei","tag-hybrid-cars","tag-ios","tag-ipad","tag-iphone","tag-latest-car-models","tag-live-soccer","tag-lol","tag-luxury-cars","tag-macbook","tag-macos","tag-mate-40-pro","tag-mi-11-lite","tag-mi-home-security-camera-basic-1080p","tag-mi-home-security-camera-basic-1080p-huawei","tag-mi-smart-band-6","tag-minecraft","tag-miui","tag-mlb-scores","tag-mobile-game-design","tag-mobile-game-development","tag-mobile-game-marketing","tag-mobile-game-monetization","tag-mobile-games","tag-mobile-gaming","tag-nba-scores","tag-nba-standings","tag-nfl","tag-nfl-scores","tag-nhl-scores","tag-off-road-vehicles","tag-one-ui","tag-oneplus","tag-oneplus-9-pro","tag-oneplus-buds-pro","tag-oneplus-nord-ce-5g","tag-oxygenos","tag-p40-pro-plus","tag-poco-x3-pro","tag-pokemon","tag-premier-league","tag-pubg","tag-pubg-mobile","tag-redmi-note-10-pro","tag-samsung","tag-samsung-pay","tag-soccer","tag-sports","tag-sports-cars","tag-steam","tag-steeam","tag-top-10-anime","tag-valorant","tag-when-do-the-iphone-7-come-out","tag-when-does-the-iphone-7-come-out","tag-when-is-the-iphone-7-coming-out","tag-world-cup","tag-xbox-series-x","tag-xiaomi"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/158962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/users\/479"}],"replies":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/comments?post=158962"}],"version-history":[{"count":1,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/158962\/revisions"}],"predecessor-version":[{"id":159431,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/158962\/revisions\/159431"}],"wp:attachment":[{"href"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