Japanese brands Honda, Nissan & Mitsubishi in a press conference announced the details regarding merger. Honda, Nissan & Mitsubishi signed a Memorandum of Understanding (MoU) which is will pave the way for further merging process.
Nissan’s junior partner, Mitsubishi is still evaluating about the merger. The final decision is expected to be made by January 2025. Once the partnership is formed, Honda & Nissan will sign a separate MoU. This will standardize vehicle platforms to reduce costs and also integrate the two brand’s Research & Development functions.
Honda & Nissan brands will also optimize their manufacturing facilities to share production lines and further streamline supply chain operations. The announcement of the MoU signing comes after weeks of rumours about the possible merger, amidst Nissan’s financial struggles. The partnership between Honda & Nissan will also include two-wheelers and aviation.
The merger between the Japanese brands is expected to be complete by August 2026. Later, the new company will be listed on the Tokyo Stock Exchange.
The Chinese rivals raises questions about the timing of the deal. The Japanese automakers are targeting over $6.4 billion in collaborations. Brands like BYD and other Chinese EV makers have concerns about the merger.
Together, Honda and Nissan would also pose more of a threat to Toyota Motor Corp., which is the world’s biggest automaker followed by Germany’s Volkswagen AG.