Honda Motor and Nissan Motor are set to begin talks about a potential merger, aiming to pool their resources in a bid to strengthen their position against larger global electric vehicle manufacturers, according to several media sources.
The talks, first covered by Nikkei newspaper on Tuesday, stated the two companies are planning to create a single holding company and are expected to sign a memorandum of understanding shortly to formalise the merger.
However, in a coversation with afaqs!, a spokesperson from Nissan stated, “The content of the reports that Honda, Nissan and MMC are considering a business integration is not based on an announcement from our company. As announced in March and August of this year, Nissan, Honda, and MMC are considering various possibilities for future collaboration including the content of the report, but no decisions have been made. If there are any updates, we will inform all stakeholders at the appropriate time.”
The merger comes as traditional automakers face increasing competition from Chinese EV manufacturers, putting pressure on legacy brands that are struggling to turn a profit from their electric vehicle initiatives. Honda and Nissan also plan to eventually include Mitsubishi Motors, where Nissan holds a 24% stake, under the new holding company, potentially forming one of the world’s largest automotive groups, according to Nikkei.
The report stated that the ownership stakes of both companies in the new entity, along with other specifics, will be determined at a later stage.
/afaqs/media/agency_attachments/2024-10-10t065829449z-afaqs_640x480.png)
/afaqs/media/member_avatars/b19bc90752f22463c21493ea40ad04dd26b32ea4045d163717734c0181e00e52.png )
Follow Us/afaqs/media/media_files/2024/12/18/fNkm7AFh9siRnaUTcqp6.png)