Japan's Honda, Nissan to begin merger talks amid EV competition

19/12/2024 6:14

Major Japanese carmakers Honda Motor and Nissan Motor will enter negotiations toward a merger, joining their resources to face fierce foreign competition in a rapidly changing automobile industry, local media reported Wednesday.

Japan's second and third largest automakers are considering operating under a holding company, and soon will sign a memorandum of understanding, Nikkei Asia said, citing sources close to the matter.

Their respective stakes in the new entity, as well as other details, will be decided later.

The report also said that Mitsubishi Motors, in which Nissan is the top shareholder, might join the grouping, forming the world's third-largest auto group with combined sales reaching around 8 million vehicles.

Nissan, Honda and Mitsubishi confirmed the report in nearly identically worded statements released later in the day, saying they are considering a number of options including the plan mentioned in the press reports.

Nissan said that it is considering various aspects of future collaboration with Honda and Mitsubishi Motor, "but nothing has been decided at this time."

Honda and Nissan agreed in March this year to commence a feasibility study on a strategic partnership in EV production and software technologies to cut costs and improve competitiveness, with Mitsubishi Motors joining the talks in August, according to Nikkei Asia.