Honda and Nissan Rev Up for Game-Changing Merger Talks

Honda and Nissan are set to announce business integration talks to survive the evolving automotive industry. This potential merger could create the third-largest auto group globally. The companies are discussing joint ventures, such as Honda supplying hybrid vehicles and sharing factory resources in Britain.

Honda and Nissan, two of Japan's top automakers, are poised to announce business integration talks in a bid to navigate the rapidly evolving automotive landscape, sources revealed to Reuters. Both companies, along with Nissan's alliance partner Mitsubishi Motors, are expected to hold board meetings on Monday, followed by a joint press conference.

A merger involving Honda, Nissan, and Mitsubishi would form the third-largest auto group globally by vehicle sales, trailing only Toyota and Volkswagen. This move marks the most significant industry shake-up since the 2021 formation of Stellantis. As per recent reports, Honda and Nissan have been exploring strategies to strengthen their partnership, amid increasing competition from Tesla and Chinese manufacturers.

In March, Honda and Nissan pledged to collaborate on electrification and software development, further integrating Mitsubishi Motors into this effort in August. Amidst declining sales in China, both companies are seeking to optimize resources. Talks have included potential collaborations, such as Honda supplying hybrid vehicles to Nissan and shared use of a car assembly factory in Britain. The companies aim to finalize negotiations by June 2025.

(With inputs from agencies.)