Recently, interest is growing in the news that Japan's Honda Motors and Nissan Motors are in the process of merging.


Although the global automobile sales rankings are all within the top 10, it is significant as a representative automobile manufacturer of Japan.

This integration movement can be said to be seeking a way to overcome the crisis through economies of scale through integration as the sense of crisis is growing due to the large-scale offensive of China's electric vehicles and uncertainty about the future mobility market is growing.

Recently, this trend is likely to spread further, especially in the global market.

This is because the key to success is who mingles the most, whether through sleeping with the enemy, unions between different species, or through alliances and alliances.

It can be said that this much concern about the future is evident. The fierce battle between electric vehicles and internal combustion engine vehicles, including the electric vehicle chasm, is a given, and concerns are growing over global issues such as America First policy due to the Trump risk, strengthening of similar regulations and systems in Europe, and expansion of electric vehicles and batteries in China.

As global challenges pile up, the merger of Japan's Honda and Nissan is being discussed as a way to resolve uncertainty about the future.

Of course, there is also talk of a split in the alliance structure between Nissan and Renault.

There is even talk of a possible future integration of Mitsubishi. Will it be effective? What are the problems and can it have real meaning?

First, we can think of the launch of the former Stellantis Group. Although the integration of global minor manufacturers such as Chrysler was underway, it can be said that there was no tension like the calm before a storm at the time.

This is because it was an integration of minor companies, not major production companies leading the global market.

The Stellantis Group is currently in a situation where it is not very meaningful to give it much effect, just like the initial progress. What will happen with the Honda-Nissan merger?

Firstly, the limitations of a typical production company may also appear. In the case of a major integrated entity, there may be expectations of subsequent aftershocks, but this case has its limitations.

Honda ranks 9th globally, and Nissan ranks 11th.

Some are even mentioning the possibility that sales volumes will be integrated to create a global top 3 company, but it remains to be seen whether this will be effective.

Nissan has the advantage of having accumulated a lot of global experience over the past 10 years through its alliance with Renault, and it also gained a global reputation with the electric vehicle Leaf in the early days of electric vehicles.

Honda is a company with advanced, technology-intensive capabilities, but economies of scale are difficult to achieve.

It is a company that possesses cutting-edge technology in the field of future mobility, including automobiles, motorcycles, drones, private airplanes, and even the old Asimo walking robot, and is the company that Toyota fears the most.

Since each has different strengths, if actual integration is carried out, we can think of a synergy greater than expected.

However, the progress that is currently being made is not accurate.

It is not yet confirmed whether Honda and Nissan will abandon their brands and launch anew, or whether it will proceed along the lines of the previously mentioned alliance concept.

Since the synergy effect will be completely different depending on the situation that unfolds in the future, it is necessary to examine the future process in detail.

Moreover, it is necessary to closely examine what is different from the situation of the Stellantis Group mentioned above.

Also, rather than simply predicting the combined sales by integrating the sales of the 9th and 11th places, the key is whether there is an actual simultaneous increase.

The qualitative level is also key, as if you make a mistake, the 9th and 11th places can meet and show the average of the 10th place.This is a matter of concern. It is something that needs to be considered.

Another point is that while actual fusion is an important element of international agreements with global production companies, this integration is being carried out with a Japanese production company.

Japanese production companies have always been shown to have limitations in terms of diversity, such as a closed culture and lack of information sharing compared to other global production companies.

It remains to be seen how well the integration of the same Japanese production company will work in the global market.

On the contrary, it could be an easy integration considering that both sides are familiar with each other's Japanese culture and regulations. It remains to be seen whether these factors will be poison or a cure.

Since the technology level of hybrid cars that are currently doing well is all high-level companies, this could also be an opportunity to activate them.

This is because hybrid cars are the most popular and explosively selling vehicles in the global market these days. Also, since the two manufacturers, who are not Toyota's electric Galapagos, are serious about electric vehicles, it would be a good target to find a common denominator for electric vehicles in future mobility.

Depending on the various factors mentioned above, a fierce battle between Hyundai and Kia Motors in the global market, including the United States, can also be expected.

It may not be right now, but if a new, merged brand appears in the future, it could cause more damage than expected.

The fierce battle in the global automobile market is accelerating.

I hope that Korean automobiles will establish our position properly and establish ourselves as a leader in the global market, along with taking the lead in new markets. The global market is becoming more competitive.