In a move that could change the automotive industry, Japanese carmakers Nissan and Honda have signed a memorandum of understanding (MOU) to merge their business. They’ve also invited Mitsubishi Motors to join the discussions on integrating their operations.
This potential merger could create the third-largest automaker by sales, as the industry shifts to electric vehicles.
“Honda and Nissan have begun considering a business integration and will study the creation of significant synergies between the two companies in a wide range of fields. It is significant that Nissan’s partner, Mitsubishi Motors, is also involved in these discussions,” said Makoto Uchida, Nissan Director, President, CEO, and Representative Executive Officer, in a statement.
“Nissan and Honda will start the discussion from today onwards with an aim to clarify the possibility of business integration by around the end of January in line with the consideration of Mitsubishi Motors,” adds Toshihiro Mibe, Honda Director and Representative Executive Officer.
The companies are planning to combine their operations under a joint holding company. They hope to have a formal merger agreement by June 2025 and to finalize the deal and list the holding company on the Tokyo Stock Exchange by August 2026.
However, the formal discussions are just beginning, and there are still many details that need to be worked out and discussed.
“To realize synergies and to make the best use of each company’s strengths, we will also study the best form of cooperation,” said Takao Kato, Mitsubishi Motors Director, Representative Executive Officer, and President and CEO.
The merger shows a trend in the industry towards consolidation as automakers try to stay competitive in the fast-changing market. Merging Nissan, Honda, and Mitsubishi Motors could create a giant that can compete with big players like Toyota and Volkswagen.
