It may be the only way Nissan/Infiniti survives.
https://www.axios.com/2024/12/18/nissan-honda-merger-talks
Does a combined holding company allow both manufacturers to stave off Chinese EV & Hybrid competition?
It may be the only way Nissan/Infiniti survives.
https://www.axios.com/2024/12/18/nissan-honda-merger-talks
Does a combined holding company allow both manufacturers to stave off Chinese EV & Hybrid competition?
I’d venture to guess that the Chinese EV and Hybrid competition would be very difficult for any manufacturer in the US to compete with. The Chinese companies have fairly nice cars at very competitive prices that automakers that operate in the US would not be able to compete with.
I can see the US trying to block Chinese automakers from entering the US (probably citing national security), but it would be a very interesting move if a company like BYD attempts to acquire Nissan – probably to enter into the US market with an established dealer network and brand recognition.
We don’t even have to cite security…just manufacturing safety and quality. They’re decades behind in that area.
I would think either the Japanese Gov’t or the US Gov’t would try to block that from happening. Japan is very protective of their markets, and BYD would gain direct access to Japan via an acquisition.
The US Government would have no ability to block a Chinese company from purchasing a Japanese company.
We would have the ability to restrict their US Entity ownership.
Not what my post addressed as the OP was not talking about Nissan USA but was referring to a Japanese company - Nissan Motor Corporation. To your point, the most publicized “blocking” of a Chinese company owning a US based company (as in TikTok’s US subsidiary) has worked really well so far.
BYD can buy whoever they want. They still are not going to be able to sell cars here competitively with current and future tariffs. Doesn’t matter what badge they put on them. Even if they were to start building EVs in Nissan’s TN plant, they can’t even import their materials and tech from their home country without heavy tariffs. Both parties seem dead set on stopping China(CCP) from taking over US EV market.
You didn’t address Japan. Do you think they would allow the purchase of Nissan and access to the Japanese markets?
But only one seems intent on crushing EV sales in this country…
I assume you are referring to removing 30d and 45w $7500 tax credit? I am not buying into the doom and gloom of removing the credits. EVs are not going anywhere, they have a place in the market. If you can’t survive building EVs without credits, you are doing it wrong. Moving those funds to help secure battery materials domestically might not be a bad thing either.
I have no idea what Japan might allow or if they could even stop such a purchase. My thought is that if Nissan had no other choice and tens of thousands of Japanese jobs were at stake? I would assume something might be worked out but in the end the answer for Japan may be more about politics and less about economics.
Fixed that for you.
I think as was said in an EV thread (and above) when the $7500 EV tax credit (yes, it is a tax credit no matter what anyone wants to say about it) was mentioned as being shut down: the market will adjust.
Even with costs for raw materials and labor rising quickly in China, they have a nearly unlimited stream of both. The government can afford to drop and subsidize the price on anything made and sold by Chinese corporations in China and that also applies to EVs. Additionally, the US has decreased imports from China since most recent tariffs that were enacted in 2017. Likely also does not matter as Chinese goods, oil and raw materials have a stranglehold on Mexico and Vietnam where the US is importing huge amounts of products from anyway so there are always workarounds for China.
If there was a 25% tariff on a BYD car sold here in the US then BYD would make and sell it for 25% less because they can and the PRC will support and subsidize this. Americans will ignore the tag and buy cheap all day long, and large volume for those subsidized goods with artificially low prices affected by tariffs will ease the pain of a 25% price drop in the end.
Not many good solutions here but one thing that won’t happen is that there will be some enormous resurgence in American manufacturing any time soon. There will be some growth but it will be statistically irrelevant compared to imports due to factors with the labor workforce and costs here in the United States that we are all aware of.
I’m more interested in what impact this will have on current or (near) future Nissan leaseholders? Will this lead to better deals in the next year or so? Do you see any risk in leasing a new Nissan within the next year? Anyone have any knowledge or insight they can share on this subject?
And it’s done…
https://www.caranddriver.com/news/a63784353/honda-nissan-partnership-talks-ended/
Good luck to him…
https://www.caranddriver.com/news/a64144261/nissan-new-ceo-ivan-espinosa/
Didn’t Honda say they’re willing to get back on the merger talks but only with a new CEO?
Oh, did they? I actually can’t recall. If so, it’ll be interesting to see if there’s another merger (or acquisition?) attempt…