Honda and Nissan Gear Up for Landmark Merger Talks

Honda and Nissan plan business integration talks aiming for a potential merger by June 2025. This merger, including Mitsubishi Motors, could form the world's third-largest auto group. They aim to address challenges from competitors like Tesla and focus on electrification and software development.

In a significant development expected on Monday, Honda and Nissan are poised to announce the commencement of business integration talks, according to sources familiar with the situation. The talks come as both Japanese carmakers navigate a rapidly evolving industry landscape, striving to stay competitive.

The two automakers aim to conclude the integration discussions by June 2025. If successful, they will establish a joint holding company, with plans to go private by August 2026. The merger, including Mitsubishi Motors, aims to create the world's third-largest auto group, trailing only Toyota and Volkswagen.

Amidst growing competition from Tesla and rising Chinese brands, Honda and Nissan have been exploring deeper collaboration, including electrification and software development. Recent developments include Nissan's plan to cut thousands of jobs and Honda's declining earnings in China, underlining the need for strategic alignment.

(With inputs from agencies.)