Honda and Nissan are reportedly in talks for a merger, Nikkei Asia reports. It is said that the two automakers are considering signing a memorandum of understanding that would establish a new holding company to consolidate their operations and equity stakes. Anonymous sources suggest Mitsubishi could also be invited to join the merger discussions.
The proposed merger would unite Japan’s second- and third-largest automakers, enabling them to better challenge industry leader Toyota and adapt to a rapidly evolving market. Bloomberg notes that this consolidation could improve their position against Tesla and other Chinese EV makers, who are outpacing Japanese manufacturers in key markets like East and Southeast Asia.
Nissan’s net earnings for mid-2024 reportedly fell by over 90% year-over-year, prompting a sharp reduction in its annual operating profit forecast by nearly 70%. According to Reuters, the automaker’s survival beyond the next year may depend on external intervention, such as Honda acquiring additional shares.
Prior to this, both Honda and Nissan have already been collaborating on EV technology, software, batteries, and other components. The two also announced plans to leverage each other’s strengths for future innovation earlier this year.
(Source: Nikkei Asia / Reuters / Bloomberg)
