Honda And Nissan Announce Blockbuster Merger Plans
Honda and Nissan have signed a memorandum of understanding that will see them work toward merging their operations by next June, the automakers announced on Monday.
Mitsubishi is also included in the discussions and could become part of the new group, which would be the third-largest automaker in the world, based on sales.
“If the business integration can be realized, both companies can aim to integrate their respective management resources such as knowledge, human resources, and technologies; create deeper synergies; enhance the ability to respond to market changes; and expect to improve mid- to long-term corporate value,” Honda and Nissan said in a news release.
Honda and Nissan have already been working together to develop vehicle software and electric vehicle platforms. Each operates several factories in the U.S. where they build many of their top-selling models, including the Honda CR-V, Honda Pilot and Nissan Rogue.
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The automakers will be merged through the establishment of a holding company and Honda will initially take the lead of its management. Honda president Toshihiro Mibe cautioned that several points still need to be ironed out and the possibility that the merger isn’t completed is “not zero,” the Associated Press reported.
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Honda’s global sales have fallen from an all-time high of 5.3 million in 2019 to 4.1 million in 2023, while Nissan’s dropped from 5.7 million in 2018 to 3,442,145 in 2023. Both automakers have been playing catch-up in the electric vehicle space, although Honda has become a leading hybrid vehicle brand in recent years.
A name for the new company, along with its formal structure and the location of its registered office, will be announced closer to the execution of an agreement.
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