Good evening. This week, Nikkei broke the big news that major Japanese automakers Nissan and Honda will begin merger talks. They are also considering eventually bringing Mitsubishi Motors into the fold. The trio’s combined sales of more than 8 million vehicles would create the world’s third-largest auto group.
However, as is often the case with merger negotiations, it’s not all optimism. According to the Nikkei reporters who broke the news, behind-the-scenes developments reveal that both Nissan and Honda had little choice but to enter into talks, primarily due to the rapidly changing business environment, including growing competition from emerging EV makers.
The two companies will reportedly begin negotiations as early as next Monday. Coincidentally, former Nissan CEO Carlos Ghosn will hold an online press conference the same day from Lebanon — a key battleground in the ongoing Middle East conflict. It has been five years since his arrest in Japan for alleged financial misconduct and his dramatic escape abroad, in which he was smuggled out in a musical instrument case while out on bail. I imagine he will once again complain about his treatment in Japan, but it will be interesting to hear what he has to say about the possible merger.
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Behind every major corporate merger, there is always a key dealmaker working in the background. In the world of Japanese politics, there was no more powerful dealmaker than Tsuneo Watanabe, the representative director and editor-in-chief of the world’s largest-circulation daily newspaper, the Yomiuri Shimbun. “Nabetsune,” as he was known, died yesterday.
In 2007, when I was a political reporter covering Prime Minister Yasuo Fukuda, it was Nabetsune who brokered the failed grand coalition between the ruling Liberal Democratic Party and the now-defunct main opposition Democratic Party of Japan, a bold and sudden move that demonstrated his influence as a political player. His death, as many Japanese politicians have noted, marks the end of an era and may also signal a turning point for the traditional print newspaper business.
Lastly, I wanted to tell you that this will be my final newsletter of 2024. Thank you very much for reading, and I wish you a happy new year.
My suggested reads
1. Malaysia’s ethnic Chinese have long been a key driver of the country’s economy, accounting for some two-thirds of private sector assets. In a rare interview, the head of the community’s association of chambers of commerce describes the goals of the group that has 110,000 members and how it builds bridges with investors from China and elsewhere.
2. For five years, Huawei Technologies has labored under a U.S. crackdown that prevents it from working with key global suppliers. This exclusive deep dive by Cheng Ting-Fang and Lauly Li reveals how the Chinese tech champion has remained competitive by nurturing domestic alternatives to the likes of TSMC and Samsung, a strategy that has raised China’s overall tech prowess.
3. U.S. President-elect Donald Trump invited Chinese President Xi Jinping to his inauguration in January. This is an unusual request, given that no foreign leader has attended the ceremony in over 150 years. Experts say Trump — who has pledged to end the war in Ukraine in a day — is expecting Xi to play a key role in persuading Russian President Vladimir Putin to join peace talks.
4. While many of the ambitious goals Beijing set a decade ago in its Made in China 2025 plan for reducing reliance on foreign technology imports and upgrading the nation’s manufacturing sector are coming to fruition, this has come at a huge cost to the economy and trade relations. For the country’s Communist leaders, the trade-off has been worthwhile.
5. “Squid Game,” the South Korean dystopian thriller that took the world by storm when Netflix released the series in 2021, returns for a second season on Dec. 26, and the hype is huge. Nikkei Asia was recently invited by Netflix to attend two big launch events in Seoul, and writer Marco Ferrarese shares his observations from the front lines of fandom.
Through the lens
This week’s top photo pick (special edition): A Japan Airlines plane collided with a Japan Coast Guard aircraft while landing at Tokyo’s Haneda Airport on Jan. 2, forcing hundreds of passengers to escape before the jetliner was engulfed in flames. (Photo by Suzu Takahashi)
Check out more of our photo coverage here.
Wishing you wonderful holidays!
Shin Nakayama
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