Honda and Nissan Begin Merger Talks to Form Third-Largest Automaker Amid EV Competition

Dec 18, 2024, 01:30 AM

Honda Motor Co. and Nissan Motor Co. are preparing to enter negotiations for a possible merger, according to reports from Nikkei. The two Japanese automakers aim to set up a holding company to join their resources and better compete against major electric vehicle makers such as Tesla and Chinese companies in a rapidly evolving automobile industry. The merger talks could ultimately be expanded to include Mitsubishi Motors Co., potentially creating the world's third-largest automotive group in terms of sales. Sources indicate that a 'Foxconn risk', referring to the possibility of Taiwan's Hon Hai (Foxconn) acquiring Nissan, has accelerated the merger discussions. This consolidation comes as both companies face immense challenges in the EV market and seek to strengthen their competitiveness.