Tokyo: Shares of Japanese automaker Mitsubishi Motors fell nearly nine percent on Friday after a report said it may not join the planned merger between industry giants Honda and Nissan.
Honda and its struggling rival Nissan agreed last month to begin talks on the tie-up, which is seen as an effort to catch up with Chinese rivals and Tesla on electric vehicles.
The two companies, along with Mitsubishi Motors, said they have signed a memorandum of understanding to begin discussions on integrating their businesses under a new holding company.
Japan’s Yomiuri daily said on Friday the small automaker was considering not participating – sending its shares down 8.7 percent in morning trading, but paring losses to six percent in the afternoon.
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Honda was down more than one percent, while Nissan slipped 3.5 percent.
Yomiuri said that with a much smaller market capitalization than Honda and Nissan, Mitsubishi Motors is worried that being absorbed by a holding company could weaken its management autonomy. Mitsubishi Motors is partly owned by Nissan.
Public broadcaster NHK said the automaker may seek to strengthen cooperation with the pair in areas such as electric vehicles.
“Such information was not released by Mitsubishi Motors,” the company said in a statement, citing Yomiuri’s original report.
“At this time, we are studying various options, and have not reached a conclusion,” it said.
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The merger between Honda and Nissan would create the world’s third-largest automaker, expanding the development of EV and self-driving technology.
Government support for EVs will see China overtake Japan as the world’s largest vehicle exporter in 2023.
Honda and Nissan – Japan’s number two and three automakers after Toyota – have already agreed to explore a strategic partnership on software and components for EVs, among other technologies.
Mitsubishi Motors joined this partnership in August.
