Honda and Nissan in Merger Talks: Aiming to Become World’s Third-Largest Automaker
On Monday, December 23, 2024, Japanese automotive powerhouses Honda and Nissan officially entered into merger talks. This groundbreaking move could potentially reshape the landscape of the global auto industry. The two companies have signed a memorandum of understanding to explore the possibility of creating the world’s third-largest automaker by sales, trailing only Toyota and Volkswagen.
The merger discussions are set to conclude by June 2025, with the aim of creating a combined entity valued at nearly $54 billion. Honda CEO, Toshihiro Mibe, emphasized the necessity of greater scale to compete effectively in the development of new electric vehicle technologies and intelligent driving systems. The companies are facing intense competition from Chinese automakers, such as BYD, which have surpassed Japan as the world’s largest auto exporter.
Mitsubishi Motors, which is already in an alliance with Nissan, will also participate in the discussions. A decision is expected by January 2025. If successful, the integration would aim to achieve combined sales revenue exceeding 30 trillion yen, with an operating profit above 3 trillion yen. The deal is expected to be finalized by August 2026, although visible progress may not be evident until 2030.
Source: CNBC