Japanese autogiants Nissan Motor Co and Honda Motor Co on Monday announced they signed a memorandum of understanding (MoU) to kick off discussions and considerations exploring a “business integration between the two companies through the establishment of a joint holding company.”
In a joint statement, Honda and Nissan said it signed an MoU to merge management resources to respond to market changes, “integrating Nissan and Honda’s four-wheel-vehicle and Honda’s motorcycle and power products businesses.”
The merger of Nissan and Honda is expected to be done via a joint share transfer, with the stock of the joint holding company scheduled to be listed on the Tokyo Stock Exchange by August 2026. “Both Nissan and Honda will be fully owned subsidiaries of the joint holding company,” they stated.
The companies said they signed an MoU back on March 15, 2024, exploring a strategic partnership related to vehicle intelligence and electrification. “Since then, the two companies have held discussions aimed at collaboration in various fields,” read the statement.
On August 1, 2024, both companies also signed another MOU where they looked to joint research in “fundamental technologies in the area of platforms for next-generation software-defined vehicles (SDVs)”. This focused on “areas crucial for intelligence and electrification”.
“I believe that by uniting the strengths of both companies, we can 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,” said Nissan CEO and president Makoto Uchida.
“Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through [a] chemical reaction that can only be driven through [the] synthesis of the two teams,” said Toshihiro Mibe, Honda director and representative executive officer.
With the merger, the Nissan-Honda merged entity looks to achieve a sales revenue surpassing 30 trillion yen and an operating profit crossing 3 trillion yen.
Mitsubishi joins merger talks with Nissan and Honda
Another major Japanese name in the automotive sector, Mitsubishi Motors Co, joined Nissan and Honda in another statement on Monday announcing it signed an MoU to “explore the possibility of Mitsubishi Motors’ participation, involvement, and synergy sharing in relation to the business integration through the establishment of a joint holding company outlined in an MOU signed between Nissan and Honda.”
This meant that Mitsubishi reached a basic understanding with Nissan and Honda regarding their August 1 MoU on car intelligence and electrification. “Mitsubishi Motors has been participating in this framework, and the three companies have been proceeding with discussions,” the official announcement read.
With the establishment of a joint holding company that houses both Nissan and Honda, all three agreed to explore the possibility of Mitsubishi participating in the merger. Whether it will indeed happen will be decided by the end of January 2025, according to the Japanese automobile companies.
