A Renault-Mitsubishi alliance to take on Honda and Nissan?

Mitsubishi might reject the Honda-Nissan alliance to preserve its independence… and a lucrative partnership!

Mitsubishi hesitates to join the proposed merger between Honda and Nissan, even though it already collaborates with these brands on joint projects, particularly in electric vehicles. This reluctance stems from a major concern that its role might be overshadowed in an entity dominated by two automotive giants.

In 2023, Honda produced 4.2 million vehicles, compared to 3.5 million for Nissan. In comparison, Mitsubishi manufactured just over one million units, making it a significantly smaller player. Moreover, many of these are not 100% Mitsubishi vehicles, as Renault already supplies Mitsubishi with shared platforms and technologies. This partnership led to the creation of the Mitsubishi ASX, a non-hybrid Renault Captur, offered at a higher price than its French cousin. In October 2023, Mitsubishi launched the Colt, a city car based on the recently refreshed Renault Clio. Additionally, there is a plan for a future Scenic model, currently in development to join Mitsubishi’s lineup with specific adjustments. An alliance with Honda and Nissan would not guarantee such technological support and could further diminish Mitsubishi’s influence—a risk the brand seems reluctant to take. Although Nissan remains its main shareholder, with ownership reduced to 24% after Mitsubishi’s share buyback last November, the company appears to have other ambitions. Perhaps a small share swap with Renault?

A mutually beneficial alternative could therefore be to strengthen its partnership with Renault. This strategy would allow Mitsubishi to stay competitive in its markets, especially in Europe and Southeast Asia.

Officially, Mitsubishi has not yet confirmed its position. It continues to evaluate options and insists that rumors about its involvement are not based on validated information. If it decides not to pursue the merger, Mitsubishi could continue its current collaborations, particularly with Renault, and focus on its niche markets. The final decision is expected by the end of January.

ALSO READ: Carlos Ghosn torpedoes the Honda-Nissan alliance