- Two of Japan’s biggest car manufacturers, Honda and Nissan, are set to enter negotiations towards a merger of the two firms, as reported by Nikkei Asia.
- The move comes as both manufacturers face increasing competition in the EV space, particularly from Chinese manufacturers such as BYD.
- It also comes just weeks after Nissan announced global job cuts of around 9,000.
Honda and Nissan explore merger
It’s not the first sign of collaboration we’ve seen between the two major automakers, however. Back in August, the duo signed a memorandum of understanding to enhance collaboration on the next generation of software-defined vehicle (SDV) technologies, which would include sharing battery parts and electric axles. However, it did not hint at this more significant merger. As part of the Renault–Nissan–Mitsubishi Alliance, Mitsubishi may also be brought into these merger talks.
Despite Nissan being a pioneer in the early EV space, with the first generation Leaf, that has not translated into a wide electric product offering in today’s age – with the manufacturer only offering two global EV models, the Leaf and the Ariya. It’s a similar story for Honda, where in Europe, it offers the sole fully-electric option of the e:Ny1 SUV. A merging of the two companies could be just what is needed to ensure competitiveness, and such a deal would likely be one of the largest seen since the formation of Stellantis back in 2021 – with a merged firm predicted to create a company worth $54 billion.
The two manufacturers are expected to confirm the merger talks next week.
When pushed for comment, a Honda spokesperson told AFP:
“We are discussing possibilities for cooperation between Honda and Nissan in the future, in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided.”
