Honda and Nissan issued a joint press release confirming reports of a possible merger. With a new joint holding company acting as the parent, the businesses will still function under their own names. The combined company would rank third globally in terms of sales volume and have a net worth of up to $50 billion if Nissan-controlled Mitsubishi joined the group.
The Nissan CEO, Makoto Uchida, termed this as, “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future”
The companies are moving forward with integration negotiations, which are still in their early stages. Toshihiro Mibe, the director of Honda, stated, “We are still at the stage of starting our review and we have not decided on a business integration yet.” The companies’ goal is “to find a direction for the possibility of business integration by the end of January 2025,” he continued. By June 2025, they anticipate having a “definitive agreement” about business integration. Approval is contingent upon Nissan completing a turnaround and requires the consent of each company’s shareholders.
Although Nissan and Honda had previously stated that they would collaborate on EV software and component development, the joint firm would be far more integrated. Standardizing vehicle platforms, bringing together research and development teams, and streamlining manufacturing facilities and systems are all part of the strategy, according to the news release. Since all of that is typically done to save money, there may be a lot of layoffs in Japan and other places.
Despite selling similar cars, such as the Honda CR-V and Nissan’s Rogue, there may be room for some cooperation between the two businesses. In addition to having more experience with EVs and plug-in electric vehicles, Nissan offers huge pickup trucks and SUVs in the US that Honda does not. Conversely, Nissan has been having market difficulties, especially domestically, while Honda’s finances have been more secure.
Nissan is already a member of the Renault-Nissan-Misubishi Alliance, of course. Together, the three companies sold 10.6 million cars globally in 2017, more than any other light vehicle manufacturer at the time. Nissan and Renault also own a 15% voting stake in the other company. Since 2009, the Alliance has sold more over a million EVs, making it one of the biggest manufacturers in the world. It’s unclear what would happen to the Alliance in the event if Nissan and Honda united.
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