Statements from company executives or industry analysis

Honda, Nissan Begin Merger Talks to Compete with Tesla and Chinese EV Makers

Dec 17, 2024, 07:20 PM

Honda Motor Co. and Nissan Motor Co. are preparing to enter negotiations on a possible merger, which could ultimately include Mitsubishi Motors, according to reports from Nikkei Asia. The merger aims to combine resources to better compete against larger electric vehicle manufacturers like Tesla and Chinese EV makers in the rapidly changing automobile industry. If successful, the merged entity would form a holding company, potentially becoming one of the world's largest auto groups with sales exceeding 8 million vehicles and ranking as the world's third-largest automaker. The move is seen as a response to rising competition from Chinese EV makers and could result in significant job cuts. Both companies have acknowledged that they are exploring various possibilities but stated that the content of the report was not something announced by either company.