TOKYO: Shares of Mitsubishi Motors fell by nearly 9% on Friday following reports that the automaker may opt out of the planned merger between Honda and Nissan.
The proposed merger, announced last month, aims to create the world’s third-largest automaker to accelerate advancements in electric vehicles (EVs) and self-driving technology, competing with Tesla and Chinese rivals.
Japanese daily Yomiuri reported that Mitsubishi, partly owned by Nissan, is concerned the merger could undermine its management autonomy. Instead, it may explore strengthening cooperation with Honda and Nissan in EV technology, according to NHK.
Mitsubishi stated that no decision has been made, refuting Yomiuri’s report. Honda and Nissan also faced declines, with shares slipping 1% and 3.5%, respectively.
The merger would combine resources and expertise, enhancing EV development as Japan faces growing competition from China, which overtook it as the largest vehicle exporter in 2023.
