HONDA AND NISSAN SET TO ANNOUNCE MERGER PLANS
Tokyo, Reuters – Honda and Nissan are expected to unveil a plan to set up a joint holding company, with the aim of reaching a deal by June 2025. The consolidation would create the world’s third-largest auto group by vehicle sales, following Toyota and Volkswagen.
Honda, Japan’s second-largest automaker after Toyota, has a market capitalization of over $40 billion, while third-ranked Nissan is valued at around $10 billion. The joint holding company will be set up in August 2026, when its shares will be listed, with Honda appointing the majority of the board, including its leader.
The merger would mark the biggest reshaping in the global auto industry since Fiat Chrysler Automobiles and PSA merged to create Stellantis in 2021. Combining Mitsubishi Motors, the Japanese group’s global sales would surpass the current number three group, South Korea’s Hyundai and Kia, with more than 8 million cars.
Honda and Nissan have been exploring ways to strengthen their partnership, including a merger, which was reported last week. The two companies agreed to conduct joint research and widened the collaboration to Mitsubishi Motors in August. Nissan also announced plans to cut 9,000 jobs and 20% of its global production capacity after sales plunged in key markets.