Honda Nissan merger talks — Biggest news of 2024!

This is unarguably the most significant news in the automotive industry this year. Honda and Nissan, two of the world’s biggest carmakers, are reportedly in talks for a prospective merger. While the Japanese giants had entered into a partnership earlier for the development of EV technology, there wasn’t any speculation about any merger till now. Here’s what we know so far about the Honda Nissan merger talks.

Nissan Honda merger talks

As reported by Japanese newspaper The Nikkei, Honda Motor Company and Nissan Motor Corporation, two major Japanese automakers, have entered into talks for a possible merger, forming a single holding company, in order to compete with rising electric vehicle players in the global markets. The two companies have been facing increased competition from Chinese companies such as BYD, pushing them to such a situation in order to survive in the industry. This will also involve Mitsubishi Motors Corporation as Nissan holds a significant stake in the former. If executed, this will be the biggest merger since the Fiat Chrysler-PSA merger that gave birth to Stellantis.

Check This Out: Is it the end of the diesel era?

Honda’s comments

A Honda spokesperson has told AFP, “We are discussing possibilities for cooperation... in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided”

Nissan’s comments

A Nissan spokesperson has told AFP, “The content of the report is not something that has been announced by either company... If there are any updates, we will inform our stakeholders at the appropriate time.”

Recent major news

Amidst facing tough times due to increased competition from automakers in the electric vehicle space, Nissan recently announced a lay-off affecting 9,000 jobs. It also cited reducing its global production capacity. Sales volumes have also been dropping significantly for Honda. But, the situation at present isn’t as bad for Honda as it is for Nissan. 

Nissan has also been loosening its ties with long-time partner Renault, and Honda has been practicing the same with General Motors, which further makes the possibility of the merger stronger. 

Also Read: Mahindra-Volkswagen joint venture in India coming close to reality?

What lies ahead?

The two companies are yet to sign a Memorandum of Understanding (MoU) confirming the merger. Also, the stakes of these respective companies in the new holding company are yet to be determined. If the merger happens, the consequent group shall become significantly larger, given Japan’s largest automaker, Toyota, a formidable competitor. Naturally, the way ahead would be paved by aggressive development of electric vehicle technology, at least in the near future. 

To stay updated with all happenings and developments in the automotive world and be a part of interesting auto discussions and more, join our official AUTOVERSE Whatsapp community (click here to join).