Nissan Motor and Honda Motor announced on Monday that they have officially agreed to initiate discussions on a potential merger, with their respective boards approving a basic framework.
Mitsubishi Motors is also exploring the possibility of joining the merger, with a decision expected by January 2025, according to Honda CEO Toshihiro Mibe during a news conference in Tokyo.
The proposed merger aims to establish a joint holding company by June 2025 through a stock transfer. Both Nissan and Honda would become wholly-owned subsidiaries under the new entity while maintaining their individual brand identities. The holding company is slated for listing on the Tokyo Stock Exchange's Prime Market by August 2026.
Mibe highlighted the potential of this merger to create a global automotive leader with projected annual sales exceeding 30 trillion yen ($191 billion) and operating profits of over 3 trillion yen.
“The synergies we anticipate from this partnership are immense, enabling us to adapt to the rapid changes in the global automotive landscape,”
he said.
Nissan CEO Makoto Uchida described the merger discussions as a transformative step for the future. He emphasized the significance of combining resources, noting the joint vehicle production of 7.5 million units annually, which could position the new group as the third-largest automobile manufacturer worldwide.
“In today’s competitive and evolving automotive industry, even large companies must innovate and adapt to secure their future,”
Uchida stated.
The talks come after initial exploration of collaboration between Nissan and Honda began in March, evolving into a formal partnership in August. Both companies are focusing on advancements in electrification and intelligent vehicle technologies, areas requiring significant investment to stay competitive.
Mitsubishi Motors CEO Takao Kato expressed the importance of collaboration in addressing the challenges of electrification and digital transformation. He emphasized that pooling resources with Nissan and Honda is essential for maintaining competitiveness in the changing industry landscape.
Masakazu Tokura, chairman of the Japan Business Federation, voiced his support for the discussions, highlighting the automotive industry’s pivotal role in Japan’s economy.
The merger discussions, if successful, could mark a significant reshaping of the global automotive sector.
News Source: China Daily
