Having joined Toyota in 1984, Akio Toyoda doubtless is aware of the ins and outs of the automotive trade higher than anybody. As CEO for over a decade earlier than stepping down in 2023 to develop into chairman of the board, he performed an important position in Toyota’s rise to international dominance. In 2024, the Japanese firm, based by his grandfather Kiichiro, was the world’s largest automaker for the fifth consecutive 12 months.
At 68, Toyoda is greater than certified to talk on what works and what doesn’t within the trade. In an interview with Automotive Information, the veteran supplied perception into the failed merger between Honda and Nissan. On the joint press convention held on December 23, 2024, which additionally included Mitsubishi, the events concerned didn’t point out what Toyoda believes is crucial: automobiles.
Picture by: Nissan
“On the press convention that adopted, I used to be fairly upset listening to what they talked about. As a result of they didn’t speak in any respect concerning the merchandise.”
As a substitute, the memorandum of understanding between Nissan and Honda was stuffed with buzzwords like “synergies” and “enterprise integration,” aiming to evolve Japan’s industrial base right into a “main international mobility firm.” To be truthful, the MoU did point out plans to standardize automobile platforms and share fashions between the 2 automakers, however with none particular particulars.
Nissan has already addressed the absence of product speak throughout the press convention. Earlier this week, the corporate unveiled a complete product roadmap, showcasing the absolutely electrical new Leaf crossover and Micra whereas teasing a number of upcoming fashions. A brand new Sentra sedan and an expanded Infiniti lineup are on the horizon.
Circling again to the canceled Honda-Nissan merger, Toyoda additionally forged doubt on the advantages of the merger had the deal gone by way of:
“Have you learnt an instance of the place there was a consolidation of firms and so they’ve made a giant success for the competitiveness? Simply having quantity doesn’t essentially imply that you simply’re robust. Quick time period, you might even see some constructive impacts. However long run, it may be fairly tough to come back to a state the place everybody says they’re glad they’ve mixed.”
One of many largest points that brought on the deal to fall by way of simply two months after the announcement was Honda’s want to show Nissan right into a subsidiary moderately than making a merger of equals.
One may argue that consolidating a number of manufacturers largely labored out for its largest rival, the Volkswagen Group. It’s nonetheless early days for Stellantis, however teething troubles are evident, particularly following CEO Carlos Tavares’ sudden resignation. Toyota is not any stranger to that includes a number of manufacturers beneath its company umbrella, having turned Daihatsu into an entirely owned subsidiary in 2016. It additionally owns Lexus, which it based in 1989. Furthermore, industrial automobile maker Hino grew to become a Toyota subsidiary in 2001.
Moreover, Toyota has alliances with a number of home automakers. In 2024, it joined forces with Mazda and Subaru to develop extra environment friendly and electrified combustion engines. The world’s largest automaker has a 20-percent share in Subaru, a 5.1-percent slice of Mazda, a 4.9-percent stake in Suzuki, and likewise owns 4.9 p.c of Isuzu.
Toyoda factors out that quantity will be each a blessing and a curse. He ought to know, as Toyota offered 10,821,480 models in 2024, together with deliveries from its Lexus, Daihatsu, and Hino subsidiaries. The corporate remained the undisputed chief regardless of a 3.7 p.c decline in comparison with the earlier 12 months. Nonetheless, managing manufacturing and gross sales at a scale of 10 million automobiles yearly “turns into actually troublesome.”
