Honda and Nissan are preparing to announce the start of business integration talks on Monday, signaling a new phase in their efforts to adapt to a rapidly changing automotive landscape. Sources familiar with the matter revealed to Reuters that the two companies will host board meetings and hold a joint press conference, which Mitsubishi Motors, Nissan’s alliance partner, is also expected to attend.
As per people, the potential merger of Honda, Nissan, and Mitsubishi Motors would form the world’s third-largest auto group by vehicle sales, following Toyota and Volkswagen. This would be the most significant reshaping of the global automotive industry since the creation of Stellantis in 2021.
The Japanese automakers have been exploring deeper cooperation, particularly in electrification and software development, to address the rising challenges posed by Tesla and Chinese competitors. They have discussed forming a joint holding company and expanding their alliance to include Mitsubishi.
Nissan is also undergoing significant restructuring, including a plan to cut 9,000 jobs and reduce its global production capacity by 20%. Similarly, Honda faces challenges in its key markets, particularly China, where its sales have declined.
Possible forms of integration include Honda supplying hybrid vehicles to Nissan and utilizing Nissan’s UK car assembly factory. Both companies aim to finalize their talks by June 2025. Renault, Nissan’s largest shareholder, has expressed openness to the potential deal, pending a thorough evaluation.
