Official announcements from Mitsubishi Motors, Honda, or Nissan, or credible financial news sources

Honda and Nissan Begin Merger Talks, Targeting August 2026 Completion

Dec 23, 2024, 08:39 AM

Honda Motor Co. and Nissan Motor Co. have announced the initiation of merger talks, aiming to establish a new holding company by August 2026. This strategic move is driven by the need to enhance their competitiveness against Chinese electric vehicle manufacturers and Tesla. The merger would create the world's third-largest automaker by sales, following Toyota and Volkswagen. Mitsubishi Motors Corp., a smaller member of the Nissan alliance, has also agreed to join the discussions. The companies signed a memorandum of understanding on December 23, 2024, to formalize these talks. The merger aims to achieve combined sales of 30 trillion yen and an operating profit exceeding 3 trillion yen. Honda, the second-largest Japanese automaker, and Nissan, the third-largest, plan to finalize the merger agreement by June 2025. The new holding company will be led by Honda, which will nominate the majority of the board members.