Honda and Nissan Begin Merger Talks; Mitsubishi Motors May Join to Form World's Third-Largest Automaker

Dec 23, 2024, 09:12 PM

Japanese automakers Honda Motor Co. and Nissan Motor Co. announced on December 23, 2024, that they have agreed to begin talks on a merger. The companies aim to establish a new holding company by August 2026, with the final agreement expected by June 2025. The merger would potentially create the world's third-largest automaker by vehicle sales, behind Toyota and Volkswagen, producing around 8 million cars annually. Mitsubishi Motors is also expected to join the talks and may participate in the merger. Renault, as Nissan's major shareholder, issued a statement saying it is considering all options based on its best interests. The move comes as the automakers seek to enhance their competitiveness in the rapidly evolving automotive industry, particularly in the electric vehicles (EV) sector, where they face increasing competition from Chinese rivals and Tesla. The integration is expected to strengthen the companies' global market presence and boost their capabilities in electrification and software integration.