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04 Jan 2025 - 09:22 pm

Welcome to the New World Order of automakers. Soon, only the big survive
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Honda and Nissan are the latest automakers to discuss combining forces. They won’t be the last.

The two Japanese automakers announced last week that they plan to merge and create the world’s third largest automaker. Details aren’t yet finalized, but they expect to announce the combination within six months.

Mergers in the auto industry are nothing new. They have taken place since the acquisition of various brands formed General Motors (GM) in the first decade of the 20th century. But experts say the Honda-Nissan deal could help to spark a string of combinations that could soon reshape the industry

“I think the environment is there for additional mergers,” said Jeff Schuster, global vice president of automotive research for GlobalData. “I don’t think Honda-Nissan will cause more deals to take place, although it could accelerate them.”

The factors driving possible deals, from technological change and the industry’s huge appetite for R&D and capital spending to thin profit margins, are numerous and powerful. The push toward consolidation is only going to get greater in coming decade. And it could be that only the biggest survive.

“It gets more challenging to survive and not have economies of scale if everyone else does, especially as you move into new technology,” he said. “When you’re in a highly competitive market, it tends to create partners that might not have happened otherwise.”

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03 Jan 2025 - 05:26 am

Medical staff on the front line of the battle against mpox in eastern Democratic Republic of Congo have told the BBC they are desperate for vaccines to arrive so they can stem the rate of new infections.
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At a treatment centre in South Kivu province that the BBC visited in the epicentre of the outbreak, they say more patients are arriving every day - especially babies - and there is a shortage of essential equipment.
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Mpox - formerly known as monkeypox - is a highly contagious disease and has killed at least 635 people in DR Congo this year.
Even though 200,000 vaccines, donated by the European Commission, were flown into the capital, Kinshasa, last week, they are yet to be transported across this vast country - and it could be several weeks before they reach South Kivu.
“We've learned from social media that the vaccine is already available,” Emmanuel Fikiri, a nurse working at the clinic that has been turned into a specialist centre to tackle the virus, told the BBC.
He said this was the first time he had treated patients with mpox and every day he feared catching it and passing it on to his own children - aged seven, five and one.
“You saw how I touched the patients because that's my job as a nurse. So, we're asking the government to help us by first giving us the vaccines.”
The reason it will take time to transport the vaccines is that they need to be stored at a precise temperature - below freezing - to maintain their potency, plus they need to be sent to rural areas of South Kivu, like Kamituga, Kavumu and Lwiro, where the outbreak is rife.
The lack of infrastructure and bad roads mean that helicopters could possibly be used to drop some of the vaccines, which will further drive up costs in a country that is already struggling financially.
At the community clinic, Dr Pacifique Karanzo appeared fatigued and downbeat having been rushed off his feet all morning.
Although he wore a face shield, I could see the sweat running down his face. He said he was saddened to see patients sharing beds.
“You will even see that the patients are sleeping on the floor,” he told me, clearly exasperated.
“The only support we have already had is a little medicine for the patients and water. As far as other challenges are concerned, there's still no staff motivation.”



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