Nissan Motor and Honda Motor announced the start of talks for a possible merger. Which could take place in June 2025 and lead to the creation of a holding company that would go public in August 2026. The main objective is to consolidate its strengths and position itself as the third largest automaker globally. Surpassed only by Toyota and Volkswagen.
During a joint press conference in Tokyo, Makoto Uchida, president of Nissan, and Toshihiro Mibe, leader of Honda, pointed out the need to adapt to the rapid changes in the automotive industry. Both executives agreed that this merger would enable greater competitiveness against emerging players in key regions such as China.
Mibe highlighted the importance of technologies such as electrification and intelligent vehicles in this transformation. He described it as “a once-in-a-century change”. And further estimated that synergies between the two companies could generate initial operating profits of €6 billion. This, with a target of €18 billion in the future.
A Third Player at the Table: Mitsubishi Motors
Mitsubishi Motors, in which Nissan has a 34% stake, is evaluating its role in this alliance. Takao Kato, president of Mitsubishi, welcomed the negotiations and announced that the company will define its participation early next year.
Strategies for Nissan and Honda´s future
Since March, Nissan had been exploring alliances with Honda for the joint development of electric vehicle components and software. It seeks to reduce costs and strengthen its competitiveness. In August, Mitsubishi Motors joined these talks.
In addition, this possible merger is presented as a strategic response to the interest of Foxconn, the Taiwanese technology giant, in acquiring part of Nissan. The alliance with Honda would offer a solid alternative to face these challenges. Also, ensure the technological and financial independence of both companies.
If the merger goes through, Japan‘s automotive industry would be dominated by two large conglomerates: the new holding company formed by Nissan, Honda and possibly Mitsubishi, and the already established group led by Toyota.
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