Nissan, Honda announce plans to merge, creating world's No. 3 automaker
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Japanese automakers Honda and Nissan have announced plans to work toward a merger, forming the world's third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.
Japanese automakers Honda and Nissan have announced plans to work toward a merger, forming the world's third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.
The two companies said they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors also had agreed to join the talks on integrating their businesses.
Honda's president, Toshihiro Mibe, said Honda and Nissan will pursue unifying their operations under a joint holding company. Honda will initially lead the new management, retaining the principles and brands of each company. The aim is to have a formal merger agreement by June and to complete the deal and list the holding company on the Tokyo Stock Exchange by August 2026, he said.
No dollar value was given and the formal talks are just starting, Mibe said.
There are "points that need to be studied and discussed," he said. "Frankly speaking, the possibility of this not being implemented is not zero."
Automakers in Japan have lagged behind their big rivals in electric vehicles and are trying to cut costs and make up for lost time.
A merger could result in a behemoth worth more than US$50 billion based on the market capitalization of all three automakers. Together, Honda, Nissan and Mitsubishi would gain scale to compete with Toyota Motor Corp. and with Germany's Volkswagen AG. Toyota has technology partnerships with Japan's Mazda Motor Corp. and Subaru Corp.
