Market
What type of financial incentives will the Japanese government provide for the Honda-Nissan merger by end of 2025?
2
Resolution / Starting Odds
Direct subsidies • 25%
Tax incentives • 25%
No financial incentives • 25%
Other forms of support • 25%
Official government announcements, major financial news outlets
Story
Honda and Nissan Start Merger Talks Aiming for Third-Largest Auto Group by August 2026
Dec 24, 2024, 09:34 PM
Honda Motor Co. and Nissan Motor Co. have initiated formal discussions on a potential merger, aiming to establish a new holding company by August 2026. The move is driven by the need to enhance their competitiveness in the global electric vehicle (EV) market amid fierce competition from Chinese automakers. The proposed merger would create the world's third-largest auto group by vehicle sales, trailing only Toyota Motor Corp. and Volkswagen Group. The integration is expected to generate over ¥1 trillion ($6.4 billion) in synergies through shared platforms, joint research and development, and procurement. However, the full benefits of these synergies are not anticipated until after 2030. Both companies face challenges in their EV offerings, with Nissan struggling with production issues and Honda focusing more on hybrids. The merger talks also include considerations from Mitsubishi Motors, Nissan's junior partner, which will decide by January 2025 whether to join the merger. The Japanese government has expressed support for the merger, viewing it as a step towards strengthening the competitiveness of the domestic auto industry.
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Yes • 50%
No • 50%
Competing with Chinese EV makers • 25%
Competing with Tesla • 25%
Cost reduction • 25%
Other strategic reasons • 25%
Merger abandoned • 25%
Merger completed • 25%
Partial merger or partnership • 25%
Merger postponed • 25%
Partial collaboration without full merger • 25%
Merger delayed • 25%
Merger abandoned • 25%
Merger completed • 25%
Partnership without merger • 25%
Merger abandoned • 25%
Other outcome • 25%
Merger delayed • 25%
Merger completed • 25%
Merger with Mitsubishi included • 25%
Successful merger • 25%
Strategic partnership without merger • 25%
No merger • 25%
Merger talks ongoing • 25%
Partnership without merger • 25%
Merger abandoned • 25%
Merger completed • 25%
Merger completed • 25%
Merger modified to include other partners • 25%
Merger postponed • 25%
Merger abandoned • 25%