Honda’s crusade to shore up car sales by absorbing Nissan could undermine an oft-forgotten but equally vital part of its company: a thriving motorcycle business.
Honda’s two-wheeler segment, which has already cornered 40% of the global market, could be better positioned to expand further if it’s given freedom, or independence, under a new holding structure. At the same time, its weight and veto power within Honda could mean negotiations may stall if it is made to bear the brunt of Nissan’s shambolic financial situation.
Honda’s motorcycle division will become "even more important as a profit contributor” if combining with Nissan has a negative effect in the short term, said Julie Boote, an automotive analyst at London-based research firm Pelham Smithers Associates. The business is important for Honda and executives know it, so they may try to "keep it very much separate," she said.
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