Honda and Nissan to Announce Integration Talks Launch
Honda and Nissan are set to announce the beginning of discussions for a business integration on Monday. According to sources familiar with the matter, the carmakers are looking to navigate the rapidly evolving landscape of the industry.
Both companies are holding board meetings to discuss the talks and will later convene for a joint press conference, with Nissan’s ally, Mitsubishi Motors, also in attendance. If the merger goes through, it would form the world’s third-largest auto group in terms of vehicle sales, trailing behind Toyota and Volkswagen.
In response to the challenges posed by Tesla and Chinese competitors, Honda and Nissan have been exploring ways to strengthen their partnership. They previously mentioned the possibility of establishing a joint holding company, as reported by Reuters last week.
Back in March, Japan’s second-largest automaker, Honda, and the third-largest, Nissan, announced their consideration of collaboration in electrification and software development. This partnership was later expanded to include Mitsubishi Motors in August.
Recently, both companies faced setbacks, with Nissan planning to cut 9,000 jobs and reduce global production capacity by 20% due to declining sales in key markets like China and the US. Similarly, Honda reported lower-than-expected earnings as a result of decreasing sales in China.
Reports suggest that potential integration could involve Honda supplying hybrid vehicles to Nissan and sharing the use of Nissan’s car assembly plant in Britain. The goal is to finalize these integration talks by June 2025, as per NHK.
Renault, the largest shareholder in Nissan, is reportedly open to the idea of a deal and would carefully examine all the implications of such a merger. The industry is eagerly watching to see how this potential collaboration unfolds.
