Honda is in talks with Nissan and Mitsubishi about a possible merger, in a move which would create a $54 billion company, number 3 in world car sales. Honda already co-operates with Nissan on electric car technology but increasing competition from Tesla and Chinese EV manufacturers and the possible increased import duties of the incoming Trump administration, is forcing the three Japanese giants to consider a full merger.

There’s no mention of motorcycles in the press coverage surrounding the announcement, which was made on 16th December. But there’s reason to believe that such a large-scale merger would be good news for Honda’s motorcycle division. Neither Nissan nor Mitsubishi currently builds powered two-wheelers (the latter offered a scooter called ‘Silver Pigeon’ in the 1950s), leaving Honda free to pursue its motorcycle and scooter business backed up by the resources of a much larger combine. A bigger source of capital and technology could only serve to bolster Honda motorcycles, both as a business, and in the transition to electric power.

Jim Freeman, chair of the BMF, said: “For riders ‘Honda’ is synonymous with motorcycling, but the car business has dominated the company for a very long time. Once seen as a Japanese ‘BMW’ Honda’s car division rather lost its way in more recent times, with some products developing a reputation for fragile components, like auto transmissions. Nissan are another brand with some recent issues. Mitsubishi have a long history too, with many aircraft to its credit, a heritage it shares with Kawasaki. A lot of heritage, but will that cut it as we move into a new era for personal transport?”

Written by Peter Henshaw

Top image courtesy of Nissan

Picture shows Makoto Uchida, left, president and CEO of Nissan, with Toshihiro Mibe, director, president and representative executive officer of Honda