Honda and Nissan are considering the possibility of a merger between the two companies in Japan, which, if created, would give rise to a new giant in the global automotive sector with global sales of around seven million vehicles.
According to the Japanese economic newspaper “Nikkei”, Honda, the second-largest automaker in Japan, and Nissan, the third, are facing increasing competition from major electric vehicle manufacturers, such as the American Tesla and the Chinese BYD, which has heightened pressure on the two Japanese brands that are struggling to achieve sufficient profits to develop their electrification strategy.
According to the Japanese publication specializing in economic matters, Honda and Nissan are considering joining together in a “holding” and are expected to sign a memorandum of understanding soon.
The publication also notes that the stakes of each company in the new entity will be decided only at a later stage.
Honda and Nissan are also still exploring the possibility of expanding this merger to include Mitsubishi Motors, of which Nissan is the main shareholder with a 24% stake.
So far, Honda and Nissan have not commented on the news of a possible merger reported by “Nikkei.”
