Mitsubishi out of Nissan-Honda merger: report

MITSUBISHI will remain independent of the proposed merger between Honda and its alliance partner Nissan, says Japanese newspaper Yomiuri.

Citing unidentified sources, the news outlet said Mitsubishi was “still weighing its options” vis à vis the proposed merger, and that “no conclusion had (yet) been reached”.

Mitsubishi CEO Takao Kato, who shared the stage with his counterparts from Honda and Nissan at the December 23 merger announcement, said at the time his company would decide by the end of January whether to participate in the venture.

Kato-san is expected to announce further details of his decision on February 3 when Mitsubishi Motors announces its fiscal third-quarter earnings.

Remaining independent of the Honda-Nissan merger will present significant challenges for Mitsubishi.

In an era where car manufacturers are joining forces to deliver larger volumes and share development costs, the choice to go it alone could place the Mitsubishi even further behind the eight ball.

Mitsubishi currently sells fewer than one million vehicles worldwide each year.

Joining forces with Honda and Nissan could see it share in synergies that could spread across some eight-million vehicles per annum, nearing the trio with number one manufacturer Toyota (11.09 million vehicles per annum).

The news comes a fortnight after Mitsubishi Motors Australian announced it would reduce its local portfolio to effectively two models.

Incoming changes in Australian Design Rules (ADRs) pertaining to Autonomous Emergency Braking (AEB) meant several of Mitsubishi Motors’ dated models would no longer be eligible for sale within Australia.

These include the Mitsubishi ASX, Eclipse Cross, and Pajero Sport.

The considerable action leaves Mitsubishi Motors Australia with just two compliant vehicles – the Outlander mid-sized SUV and Triton light commercial utility.

Speaking at the time, Mitsubishi Motors Australia chief executive officer Shaun Westcott said production of the ASX, Eclipse Cross, and Pajero Sport had now ceased due to the adoption of new Australian Design Rules regulations that take effect on 1 March 2025.

“Given the position of ASX, Eclipse Cross and Pajero Sport in their current life cycles, investment towards the re-engineering of these vehicles to incorporate the new ADRs was not commercially feasible,” he said.

“As a result, Australian production of these vehicles has ended. This is not unprecedented; we have seen similar situations before, and our teams are well-prepared to manage this transition.

“We have worked closely with our dealer partners to ensure each model line will be ordered in sufficient quantities ahead of time.

“This will support our customers while we continue to confirm our future model plans as a core Mitsubishi market.

“We will announce these future models in due course.”

Mr Westcott said the importer will introduce a replacement for its popular ASX compact SUV sometime in 2025.

The Spanish-built model, which was developed alongside the Renault Captur, is tipped to feature the choice of petrol-electric hybrid, petrol mild-hybrid, or petrol-only drivelines when it replaces the 15-year-old ASX later this year.

Based upon European specifications, it is likely the ASX will be powered by a 1.6-litre petrol-electric hybrid driveline combining a four-cylinder petrol engine with two electric motors, a 1.3-litre petrol mild-hybrid unit, or a 1.0-litre turbocharged petrol unit with six-speed manual (67kW) transmission.

Pricing and local specifications for the 2025 Mitsubishi ASX will no doubt be revealed closer to the model’s Australian launch.