Honda and Nissan's Groundbreaking Merger Talks: A New Auto Giant Emerges

Honda and Nissan are reportedly in talks about merging to form the world's third-largest auto group. This move, also involving Mitsubishi Motors, could reshape the industry landscape. The potential merger comes as the companies face challenges from competitors like Tesla and Chinese automakers.

In a significant development for the auto industry, Honda and Nissan are reportedly poised to begin business integration talks. According to Japanese media, both automakers will conduct board meetings to discuss the potential merger, followed by a joint press conference, with Mitsubishi Motors, Nissan's alliance partner, likely in attendance.

The proposed merger could create the third-largest auto group globally after titans Toyota and Volkswagen, marking the biggest industry deal since Stellantis' 2021 formation. As reported by Reuters, the discussions aim to strengthen partnerships amid rising competition from Tesla and Chinese brands. Last month, Nissan revealed plans to cut 9,000 jobs due to plummeting sales in its critical markets, China and the U.S.

Other potential collaborative efforts include Honda supplying hybrid vehicles to Nissan and sharing Nissan's U.K. car assembly plant, as reported by Kyodo News. French automaker Renault, Nissan's largest shareholder, has expressed preliminary openness to the deal, though it continues to evaluate the implications.

(With inputs from agencies.)