Auto Expert Weighs in on Honda-Nissan Merger
Auto expert Mike Caudill joined “Cavuto: Coast to Coast” to discuss the likelihood of a merger between Honda and Nissan. The two Japanese automakers announced on Monday that they will consider a merger and setup a joint holding company, which would create the world’s third-largest automaker.
Under the proposed merger, the companies aim to achieve combined sales of $191 billion and an operating profit of over $19 billion. The merger talks come at a time when both automakers are struggling to compete with the largest global electric vehicle makers, including Tesla and Chinese automaker BYD.
The merged company would rank third in the industry, behind Toyota and Volkswagen. Honda, the second-largest Japanese automaker, has a market capitalization of over $40 billion, while Nissan is valued at around $10 billion.
Nissan’s Director, President, CEO, and Representative Executive Officer, Makoto Uchida, and Honda’s Director, President, and Representative Executive Officer, Toshihiro Mibe, held a joint news conference to announce the merger. According to Uchida, the merger would allow the companies to “deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Mibe emphasized the importance of combining the companies’ resources, including knowledge, talents, and technologies, to overcome the challenging environmental shifts facing the auto industry. He stated that the merged company would create a new mobility value by combining the strengths of both companies.
The majority of the holding company’s board will be appointed by Honda, and the companies have agreed to widen their collaboration to Mitsubishi Motors. The merger is expected to be completed by August 2026, with the companies’ shares set to be delisted.