Honda and Nissan have officially confirmed rumors that they are pursuing a merger, the companies wrote in a joint press release. Each will continue to operate under its own brand, but with a new joint holding company as its parent company. If Nissan’s Mitsubishi Motors joins, the combined group will become the world’s third-largest automaker by sales, with net assets of up to $50 billion.
“Today is a pivotal moment as we begin discussions about a business combination that has the potential to shape the future of our company,” said Nissan CEO Makoto Uchida.
Integration negotiations are still in the preliminary stages, but both companies are making progress. Honda director Toshihiro Sanbe said, “We are still in the process of considering the matter, and no decision has been made yet regarding the business integration.” However, it added that the two companies aim to “find a direction for a possible business combination by the end of January 2025.” After that, they aim to conclude a “final agreement” on business integration by June 2025. Approval requires the approval of each company’s shareholders and is conditional on Nissan carrying out the restructuring.
Nissan and Honda previously announced plans to collaborate on EV component and software development, but the joint venture will be more integrated. According to a press release, the plan includes: Standardization of vehicle platforms. Integrate research and development teams. Optimization of manufacturing systems and equipment. These are typically aimed at cutting costs and could lead to significant job cuts in Japan and other countries.
Nissan Titan pickup lineup (Nissan)
Both companies sell similar cars such as Nissan’s Rogue and Honda’s CR-V, but it appears that some synergies can be expected. Nissan sells large pickup trucks and SUVs in the U.S. that Honda does not offer, and it also has extensive experience with EVs and plug-in electric vehicles. On the other hand, Honda is relatively stable financially, while Nissan is struggling in the market, especially in Japan.
Of course, Nissan is already a member of the Renault-Nissan-Mitsubishi Alliance. Nissan and Renault hold 15% of the other party’s voting rights, and together they sold 10.6 million cars worldwide in 2017, more than any other light car manufacturer at the time. Ta. Alliance is also the world’s largest EV manufacturer, having sold more than 1 million vehicles since 2009. It is unclear what will happen to the alliance if Nissan and Honda merge.
