Honda and Nissan have officially confirmed the rumors that they want to meet, these companies wrote in a statement issued jointly to the media. Each will continue to operate under its own brand, but with a new combined parent company. If Nissan-controlled Mitsubishi were to enter, the combined group would be the world’s third largest by sales and have a net worth of $50 billion.
“Today marks an important moment as we begin discussions on business integration that may shape our future,” said Nissan CEO Makoto Uchida.
Merger talks are preliminary, but the companies are still moving forward. “We are in the early stages of review and have not yet made a decision on the business combination,” said Honda director Toshihiro Mibe. However, he added that the companies intend to “get an indication of the possibility of a business combination by the end of January 2025.” After that, they hope to have a “definite agreement” on the business combination by June 2025. Approval must come from the shareholders of each company and is subject to Nissan making changes.
Nissan and Honda have previously announced plans to work together in EV components and software development, but the combined company will be more integrated. According to a press release, this program includes: leveling vehicle platforms; assembling research and development teams; and optimizing production and resource planning. All of that is usually designed to cut costs, so it could mean massive layoffs in Japan and elsewhere.
Although both companies sell similar vehicles such as Nissan’s Rogue and Honda CR-V, there is some overlap happening. Nissan sells large trucks and SUVs in the US that Honda does not and has more experience in EVs and plug-in electric vehicles. On the other hand, Honda has a stable income while Nissan is struggling in the market, especially at home.
Of course, Nissan is already in the Alliance Renault-Nissan-Misubishi. Nissan and Renault have 15 percent of the vote each, and all three sold 10.6 million vehicles worldwide in 2017, more than any other small car manufacturer during that time. Alliance is also one of the largest EV manufacturers in the world, and has sold over a million units since 2009. If Nissan and Honda are merged, it is not clear what will happen to the Alliance.
Source link
