教養チャンネル wrote a post · Dec 18, 2024 08:44

Detailed analysis on the management integration of Honda and NISSAN MOTOR CO

1. Background and Strategic Significance of Integration

Rapid growth of the EV market ✔️
Tesla (USA) and BYD (China) are taking the lead, intensifying competition in the EV sector.
Honda and NISSAN MOTOR CO face significant investment burdens on their own, with limits on the speed of technological development.

✔️ Software and self-driving technology
The competitiveness of the automobile industry is shifting from 'hardware (vehicle body)' to 'software'.
Developing in-car operating systems and autonomous driving systems requires massive investments, necessitating efficiency through integration.

✔️ Global Share and Economies of Scale
Rising to 3rd place in the world (7.35 million units) through the integration of Honda and NISSAN MOTOR CO.
Enhancing competitiveness against top players like Toyota and Volkswagen.

2. Benefits of Integration

Reduction of investment burden EV, software, and self-driving areas require massive investments.
By integrating both companies, it is possible to share development costs and improve efficiency.

✔️ Strengthening technological capabilities
Combining Honda's "EV technology and internal combustion engine technology" with Nissan's "LEAF's EV track record and battery technology" to enhance competitiveness.

✔️ Economy of scale
The total number of passengers carried would be 7.35 million units, and cost reductions are expected through commonization of production lines and parts procurement.

✔️ Strengthening the global market
Complementing the North American market (NISSAN's strength) and the Asian market (Honda's strength) to strengthen competitiveness worldwide.
Battery and component commonization significantly reduces manufacturing and development costs by standardizing EV battery specifications and components.
Risk diversification in management enhances resilience to specific market or sector downturns by dispersing the risks of standalone operations through integration.

3. Disadvantages and Issues of Integration

✔️ Delay in decision-making
After integration, time may be needed for opinion alignment and policy decision-making between the two companies, potentially causing delays in decision-making.

✔️ Dilution of brand strength
Risk of diluting the unique brands of Honda and NISSAN through integration, necessitating the maintenance of customer base.

Differences in cultural and management policies.
Due to the difference in management culture between Honda and NISSAN MOTOR CO, there is a possibility of friction in post-merger organizational operations and labor relations.
NISSAN MOTOR CO's management reconstruction NISSAN is in the process of management reconstruction, announcing a reduction of 9,000 employees. Concerns arise as to whether this will not become a hindrance to the merger.

Integration costs and time.
It takes time and additional costs for the actual effects of management integration to materialize, making it difficult to expect short-term performance improvements.

Uncertainty in market evaluation.
After the integration announcement, if the market does not evaluate the integration effects, there is a possibility of stock price decline and investor concerns.

4. Points to watch in the future.

Forms of business integration and leadership.
It is expected that the business integration will proceed in the form of establishing a holding company, but the leadership and division of roles after the integration are important.
Who will take the helm, and can the decision-making process maintain transparency.

Participation of Mitsubishi Motors.
The focus is on the integration participation of Mitsubishi Motors, where Nissan is the largest shareholder.
With Mitsubishi's participation, the competitiveness of the alliance will further increase.

Detailing the strategies for EV and Software.
Announcing the unified battery standards and the joint development schedule of in-car operating systems after integration.
Speedy development is required as a countermeasure against Tesla and BYD.

NISSAN MOTOR CO's management restructuring status
The success or failure of the integration depends on the restructuring of the management.
NISSAN MOTOR CO's ability to reduce production capacity and cut costs as planned is in question.

Market and investor reactions
Stock price movements and market evaluations after the integration announcement.
If synergies are expected, there is a possibility of a positive impact on the stock prices of both companies.

【Educational Perspective】
Outlook on Management Integration

The integration of Honda and NISSAN MOTOR CO will be a strategic move to enhance competitiveness in next-generation technologies such as EVs and self-driving cars.
On the other hand, the challenges of NISSAN's management restructuring and differences in the cultures and management policies of both companies have emerged.

Key to Success
Achieving efficiency through investment sharing
Integration of technology and acceleration of innovation
Harmony of management policies and brand strength
Demonstrating integration effects in the short term and gaining trust from investors

If the world's third largest automobile group is created, competitiveness will increase significantly, but the success of the integration depends on future strategies and execution.

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教養チャンネル

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