Japanese automakers Honda Motor and Nissan Motor are reportedly preparing for merger talks to strengthen their position in the fast-evolving global automotive market. According to a report by the Nikkei newspaper, the companies aim to operate under a holding company structure, potentially including Mitsubishi Motors, in which Nissan holds a 24% stake.
If realised, the merger could result in a combined entity selling over 8 million vehicles annually, placing it among the world’s leading automakers. However, it would still trail Japan’s Toyota Motor, which sold 11.2 million vehicles in 2023, and Germany’s Volkswagen, which recorded 9.2 million sales last year.
Honda and Nissan have not confirmed the report but acknowledged ongoing explorations for collaboration. “The reported content was not released by our company,” Honda stated. “As announced in March, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths. We will inform stakeholders of any updates at an appropriate time.”
The potential merger follows a strategic partnership formed earlier this year between the two companies to share automotive components and software. If executed, it would mark the largest industry merger since Fiat Chrysler and PSA Groupe combined to form Stellantis in 2021.
Analysts suggest the move could help the automakers compete more effectively against emerging Chinese competitors and Tesla, a U.S. leader in electric vehicles. Shares responded positively to the report, with Honda’s U.S.-traded shares rising by 2% and Nissan’s over-the-counter shares jumping more than 11% during midday trading Tuesday.
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