Merging Horizons: Honda and Nissan's Strategic Alliance Plan

Honda and Nissan are reportedly planning a merger through a joint holding company, eyeing to become the world's third-largest auto group. The deal is expected by mid-2025, merging strengths to combat competition from Tesla and Chinese automakers as traditional carmakers face evolving industry challenges.

Honda and Nissan are poised to potentially reshape the automotive landscape with a merger announcement expected this Monday, insiders reveal. The automakers plan to establish a joint holding company by June 2025, creating the world's third-largest automotive group, aimed at addressing pressures from Tesla and competitive Chinese brands.

The planned merger of Honda, Japan's second-largest automaker, and third-ranking Nissan signifies an industry milestone following Fiat Chrysler Automobiles' union with PSA in 2021. With a joint press conference scheduled at 0800 GMT, key executives, including Mitsubishi Motors' leader, strive for fruitful collaborative prospects.

This transformative strategy targets a global sales boost exceeding eight million units, surpassing South Korea's Hyundai and Kia. As distinct brands under shared leadership, the alliance hopes to capitalize on burgeoning electrification and advanced software functionalities for sustainable growth amid market shifts.

(With inputs from agencies.)