Updated:Honda and NissanEarlier statement, confirming that the two parties have signed a memorandum and will consider the possibility of including Mitsubishi Motors in the merger. It also confirmed that based on the agreement between Honda and Nissan, a joint holding company will be established to operate their respective businesses.
Mitsubishi Motors expects to submit the results of its study on whether to participate in the merger between Honda and Nissan by the end of January 2025.
Nikkei News reports thatHonda and Nissan are expected to sign a basic agreement today (12/23) and will begin discussions on the integration of their businesses, with a final agreement expected to be reached as early as June 2025.
Reports indicate that Honda and Nissan will establish a new holding company, merging the existing Honda and Nissan systems. The new company's president will be selected from Honda's nominated directors, and the new holding company will also appoint several internal and external directors. If the merger goes through, it will create one of the top three global automotive groups.
At the same time, the two parties will share vehicle technology development costs and simplify management through business integration, thereby improving vehicle market competitiveness.
The main purpose of the merger between Honda and Nissan is expected to beGather more development resources, thereby improving its competitiveness with Chinese car manufacturers and European and American electric vehicle brands. However, Nissan is still facing operational difficulties. In addition, Honda's corporate culture is obviously different from that of Nissan and Mitsubishi, which have strong government shares and financial groups involved in operations. It is actually difficult to say whether the two parties can successfully reach a merger consensus in the future.
