Japanese Automotive Giants Honda and Nissan Announce Plans for Merger
Japanese automotive giants Honda and Nissan have officially confirmed that they will be entering talks to merge their companies into a new automotive powerhouse. The merger could potentially also include Mitsubishi, another prominent player in the industry.
The two companies have signed a Memorandum of Understanding (MoU) to initiate discussions regarding a ‘business integration’ that would see the formation of a new joint holding company. Additionally, Honda and Nissan have also signed a separate MoU with Mitsubishi, exploring the possibility of integrating Mitsubishi into the new holding company. Reports of these plans were first brought to light by Nikkei last week.
The discussions are set to commence shortly, with the aim of reaching a definitive agreement by June 2025. If all goes according to plan, the merger is expected to be finalized by August 2026. While Honda and Nissan would continue to operate as distinct brands, behind the scenes they would streamline platforms and powertrains, collaborate on research and development, and work together on manufacturing processes.
As Japan’s second- and third-largest car manufacturers, Honda and Nissan collectively sold nearly 7.5 million vehicles globally last year. Their decision to explore a merger comes on the heels of a strategic partnership announced earlier this year to develop electric vehicles, with plans to expand their collaboration to encompass a broader range of initiatives, including software-defined vehicles.
Both companies have emphasized that the proposed merger is aimed at maintaining global competitiveness and delivering more innovative products to consumers. Nissan CEO Makoto Uchida expressed optimism about the potential partnership, stating that it represents a pivotal moment in shaping the future of both companies.
Honda CEO Toshihiro Mibe echoed Uchida’s sentiments, highlighting the importance of leveraging the combined resources, expertise, and technologies of both Honda and Nissan to address the evolving challenges facing the automotive industry.
Overview of the Merger Plan
Under the proposed merger plan, Honda and Nissan intend to establish a new joint holding company that would act as the parent organization overseeing both entities. This would be achieved through a joint share transfer, subject to approval by shareholders from both companies. The specific share transfer ratio will be determined as part of the final agreement.
