Historic Auto Merger: Honda and Nissan Gear Up for a Game-Changer

Honda and Nissan are in talks for a potential merger to combat the rising threat from Chinese EV makers. The merger could create the world's third-largest auto group, aiming for significant sales and profit. Mitsubishi Motors may join, enhancing global sales further for the Japanese auto group.

In a bold move that could reshape the global auto industry, Honda and Nissan announced on Monday that they are in discussions about a potential merger. This historic proposal aims to form the world's third-largest auto group, significantly impacting the landscape amid pressure from Chinese electric vehicle manufacturers.

The proposed merger, which may include Mitsubishi Motors, highlights the increasing challenges faced by traditional automakers. Honda and Nissan's joint efforts are poised to elevate their competitive edge, providing both companies with the scale and resources necessary to face off against innovators like Tesla and BYD.

The merger talks are set to conclude by June 2025, with a holding company targeted to be established by August 2026. This strategic alignment comes as Japanese automakers navigate declining sales figures in key markets such as China and the U.S.

(With inputs from agencies.)