Toyota Honda Merger | Is It Possible To Merge Between Two?

Last Updated on November 14, 2021 by Viva Elizeee

Toyota and Honda are two of the biggest automobile manufacturers in the world. Both the companies have a very big fan following and both have a very strong brand name. These two companies need no introduction to anyone. But recently there has been news that Toyota is planning to merge with Honda. The reason why some people are saying that it is possible is that both the companies are having a very tough time at present. Both the companies are finding it difficult to maintain their sales figures and that is why people rumored that maybe these two car manufacturing companies will merge together in near future. 

Will Toyota And Honda Merge Together?

It is possible. But it is not very easy. As we all know both the companies are having a tough time at present and they might merge together to reduce their losses. But no one knows for sure that whether these two companies will actually merge or not. There is a big problem that Toyota and Honda have to face before merging with each other. The main reason for this problem is the difference in their customers. If we talk about Honda then it has a lot of fans in Asian countries like Japan and Korea and if we talk about Toyota then it has more fans in European and American countries.   

This difference in customer base will surely create problems for both the companies if they decide to merge with each other.   But there is one thing that both the companies have in common and that is their old rivalry. If we talk about the rivalry between Toyota and Honda then we will find out that both these companies are having a very big rivalry for a long time. Both the companies are using the same technology and they also have some of the same projects together as they had jointly developed cars like Toyota Vios and Honda Fit.   So if these two companies decide to merge with each other then it is possible for them to get rid of their old rivalry.   

Will There Be Any Other Problems?  Yes, there will be another problem that will arise if these two companies decide to merge with each other. And that is the question of the brand name. 

10 Reasons Why Toyota Car Brand And Honda Car Brand Will Never Merge? 

There are some technical and business reasons why the two brands can’t merge. Some of these are. 

1. Brand Recognition: Honda is a very well-established brand name in Asian countries like Japan and Korea. But it is not as well recognized as Toyota in European and American countries. If the two companies merge with each other then Honda will lose its identity as a brand name.   

2. Brand Loyalty: There are a lot of fans for the Honda car brand but there are more fans for the Toyota car brand. If the two companies merge with each other then the fans of Honda will lose their loyalty to the company even though they will get a better car from that company.   

3. Product Rivalry: Both the companies will lose their rivalry if they decide to merge with each other because they will be using the same technology and both will be making the same type of cars.     

4. Business Model: Both the companies will lose their business model if they decide to merge with each other because they will be using the same business model and that will reduce their profits.    

5. Brand Value: If the two companies decide to merge with each other then their brand value will fall down and that is why the company’s overall value will also fall down.    

6. Cost: The cost of running a business is very high and if these two companies decide to merge with each other then the cost of running a business for them will increase and that is why their profits will also decrease.   

7. Customer Service: If the two companies decide to merge with each other then they will have to give the same customer service and that will be a very big problem for them as both the cars have different technical specifications and parts and maintaining two different tech support system will be a hassle.    

8. Customer: A new company will be born if these two companies decide to merge with each other and that company will have a lot of customers from both the companies. But it is not sure that whether the customers of both the companies will accept this new company or not. We can say that if these two companies decide to merge with each other then there will be a lot of problems for them and they might lose their customers as well as their profits.    

9. Technology: If these two companies decide to merge with each other then they will have to share their technology with each other. But it is not sure that whether the technology of both the companies will be compatible with each other or not.     

10. Image: The image of the company is very important because it plays a very important role in attracting customers. If these two companies decide to merge with each other then their image will get damaged and that is why they might lose their customers as well as their profits.   So if we talk about the advantages and disadvantages of merging between Toyota and Honda car brands then we can say that there are more disadvantages than advantages in this situation and if these two companies decide to merge with each other then they will face a lot of problems in future. 

Conclusion

 So if these two companies decide to merge with each other then it is possible for them to get rid of their rivalry. But there are some problems that will come in between them if they decide to merge with each other. If the two companies decide to merge with each other then both the companies will lose their identity as a brand name. Both the companies will also lose their brand loyalty because there are more fans for the Toyota car brand than the Honda car brand. Both the companies will also lose their rivalry because they are using the same technology and they also have some of the same projects together as they had jointly developed cars like Toyota Vios and Honda Fit. 

These two companies can never merge with each other unless they change their business models and they change their customers’ criteria of choosing a business. 

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