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Home»Automotive»Honda and Nissan reported to be in merger talks to create global powerhouse
Automotive

Honda and Nissan reported to be in merger talks to create global powerhouse

Aimee TurnerBy Aimee TurnerDecember 17, 2024No Comments2 Mins Read
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Japan’s manufacturing heavyweights Honda and Nissan are set to start merger talks as they battle mounting competition from Chinese EV manufacturers, reports the Nikkei.

As Japan’s second and third largest automobile makers after Toyota, each have seen market share erode, particularly in China, where EV sales hit 1.27 million units in November – nearly 70% of the worldwide total.

In 2023, Honda and Nissan sold a combined 7.4 million vehicles worldwide but are grappling to maintain pace as those rivals surge ahead. The 2 corporations had already been strengthening ties: in March, they agreed to collaborate on EVs, and by August, they’d expanded their technology partnership.

Now, the  automobile makers are reportedly eyeing a single holding company, with a memorandum of understanding expected soon. Mitsubishi Motors – through which Nissan holds a 24% stake – can also be included, potentially creating one in all the world’s largest alliances. Details, including ownership stakes in the brand new entity, remain to be clarified.

If the deal materialises, it could mark the industry’s biggest shake-up since Fiat Chrysler’s $52 billion merger with PSA in 2021, which formed Stellantis, home to Jeep, Peugeot, and other major brands.

Honda and Nissan declined to comment on the Nikkei report. 

This Article First Appeared At www.am-online.com

create global Honda merger Nissan Powerhouse reported Talks
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