Honda and Nissan merge, where will the original tires go?

December 25, 2024
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Guide
Highlights at a glance
The automotive industry is undergoing seismic shifts, with Honda, Nissan, and Mitsubishi announcing merger talks set to culminate in a potential joint listing by August 2025. This consolidation reflects broader turmoil in the sector, exemplified by the sudden collapse of Jiyue Auto—a former Baidu-Geely-backed rising star—plunging into chaos due to a broken capital chain, leaving suppliers stranded. Many new EV players like Weimar, Hengchi, HiPhi, and Reading Auto have faltered, dragging down tire partners such as Yuanxing Rubber. The tire industry, tightly bound to auto manufacturers, now faces existential threats amid shrinking profits and weakening demand for new energy vehicle tires. Nearly half of NEV buyers are reconsidering fuel-powered cars, worsening market challenges. While OEM partnerships remain crucial for tire brands like Bridgestone and Michelin, offering visibility and loyalty, the volatile auto landscape makes such alliances increasingly risky. As automaker instability spreads, tire companies walk a razor’s edge between opportunity and ruin.
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