Honda and Nissan reported to be in merger talks to create world powerhouse
Japan’s manufacturing heavyweights Honda and Nissan are set to start merger talks as they battle mounting competitors from Chinese language EV producers, stories the Nikkei.
As Japan’s second and third largest automotive makers after Toyota, each have seen market share erode, significantly in China, the place EV gross sales hit 1.27 million items in November – almost 70% of the worldwide complete.
In 2023, Honda and Nissan offered a mixed 7.4 million autos worldwide however are grappling to maintain tempo as these rivals surge forward. The 2 firms had already been strengthening ties: in March, they agreed to collaborate on EVs, and by August, they’d expanded their know-how partnership.
Now, the automotive makers are reportedly eyeing a single holding firm, with a memorandum of understanding anticipated quickly. Mitsubishi Motors – during which Nissan holds a 24% stake – might also be included, probably creating one of many world’s largest alliances. Particulars, together with possession stakes within the new entity, stay to be clarified.
If the deal materialises, it will mark the trade’s largest shake-up since Fiat Chrysler’s $52 billion merger with PSA in 2021, which shaped Stellantis, residence to Jeep, Peugeot, and different main manufacturers.
Honda and Nissan declined to touch upon the Nikkei report.
