If you’ve been keeping abreast with the car and motorcycle industries for some time now, you’d know that partnerships between manufacturers aren’t exactly rare. Sure, some of them are surprising, while others make perfect sense. Meanwhile, others just sort of fizzle out.
Big names like Yamaha and Toyota have been working together for decades, with a certain high-revving naturally aspirated V10 engined supercar being their unequivocal masterpiece. You could also argue that the alliance between KTM and CFMoto has brought forth some pretty cool middleweight bikes. Similarly, Harley-Davidson is working with India’s Hero MotoCorp to penetrate emerging markets.
And so, when rumors of a Nissan-Honda merger started making their rounds, it wasn't exactly shocking news—but it was definitely interesting.
I mean, from a motorcyclist’s perspective, it didn’t really concern me. Honda would continue making epic motorcycles—from 125cc commuters to fire-breathing superbikes. But what was interesting was how the supposed merger could have given birth to some pretty epic bikes. Nissan knows a thing or two about electrification, perhaps a whole bunch more than Honda does. So a new hybrid sportbike, or maybe even a high-performance full-electric motorcycle using Nissan’s battery tech would’ve been cool.
But alas, it seems that all these speculative developments are now closer to fiction than reality. And that’s because it appears that Nissan has decided to back out of the partnership.
So, what was supposed to happen?
Well, back in December of last year, Honda and Nissan signed an MoU setting the stage for what was supposed to be a game-changing merger. Had it gone through, the two companies would have formed the world’s third-biggest automaker, trailing only Toyota and Volkswagen. And both companies could have stood to gain quite a bit, too.
On the one hand, Nissan would have been handed a much-needed lifeline, especially now that it’s been struggling with its finances and losing market share in some pretty important regions like China. On the other hand, Honda would’ve gotten its greasy hands on some cutting-edge tech, particularly in the field of EVs and software-defined vehicles.
Unfortunately, however, it appears that Nissan wasn’t as into the idea as Honda had initially thought. Multiple reports suggest that Honda’s plan was to eventually turn Nissan into a subsidiary, and not an equal partner. Naturally, a move like this didn’t sit well with the execs over at Nissan, and things started turning sour. Now, Nissan boss Makoto Uchida has reportedly told Honda’s boss Toshihiro Mibe to fuck off—though he probably did this in a much more polite and professional manner, of course.
Moving forward, it’s clear that the situation is more of an “it’s your loss” type deal from Honda’s perspective. But Nissan’s determined to find success elsewhere. Reports suggest that Nissan is in talks with Foxconn (yes, the company that assembles iPhones), with the latter supposedly swooping in to buy a chunk of Renault’s stake in Nissan. But the clock’s ticking, as Nissan insiders say that the company has about 12 to 14 months to turn things around before shit hits the fan.
So, was this the right move for Nissan? Your guess is as good as mine. Going for a merger with Honda seems like an easy ticket to financial stability. But at the same time, the global situation is changing, the geopolitical landscape is shifting, and the automotive world is somewhere between limbo and a weird transitional phase. So maybe Nissan thinks that handling all this solo will give it more flexibility in the long run.
Meanwhile, for Honda, the situation is less dire. It’s obviously the stronger company in this equation, so walking away from the deal doesn’t spell disaster. Nevertheless, having a merger fall apart at the last minute isn’t a great look, and it might raise questions about Honda’s ability to close big deals in the future.
But for us motorcyclists, Honda’s motorcycle division remains its most profitable global initiative, and you can bet that its bottom line remains highly desirable thanks largely to the millions of two-wheelers it sells on a yearly basis. Honda’s motorcycle division remains a solid foundation for Honda as a hole, and it ensures that the company as we know it isn’t going anywhere anytime soon.
