23rd December 2024 – (Tokyo) Major Japanese automakers Honda Motor and Nissan Motor are reportedly aiming to conclude their merger discussions by June 2025, as they seek to establish a strategic alliance that would create the world’s third-largest automotive group by volume, following Toyota Motor and Volkswagen AG. According to local media, the two companies are expected to reach a preliminary agreement today to initiate comprehensive negotiations regarding the merger.
Honda and Nissan, which rank as Japan’s second- and third-largest automakers, are considering operating under a holding company structure that would also involve Mitsubishi Motors, a current partner of Nissan. Sources indicate that Honda is likely to nominate the majority of the holding company’s directors, both internal and external, with the president expected to be appointed from Honda’s ranks.
This strategic move aims to enhance cost competitiveness and strengthen their position in the electric vehicle (EV) market, which is increasingly dominated by American and Chinese competitors. Earlier this year, Honda and Nissan began a feasibility study to explore a partnership focused on EV production and software technology, with Mitsubishi joining the discussions in August. This collaboration is seen as essential for both companies to adapt to the rapidly changing automotive landscape and to drive efficiencies in their operations.
