Honda and Nissan announced today their discussions to merge by 2026, aiming to create the world’s third-largest automotive group in terms of sales, following Toyota and Volkswagen. The merger is intended to enhance their competitiveness against Chinese manufacturers, who have shown a quicker capability in developing electric vehicles.
Honda CEO Toshihiro Mibe stated that the rise of Chinese manufacturers has significantly impacted the industry and stressed the need to strengthen their position to compete by 2030. If successful, the merger would represent the largest restructuring in the global auto industry since the 2021 merger of Fiat-Chrysler and PSA Peugeot into Stellantis.
Mitsubishi Motors, in which Nissan is the largest shareholder, may also join the merger, with a decision expected by the end of January. The three companies’ executives held a joint press conference in Tokyo, aiming for a combined revenue of 30 trillion yen (183 billion euros).
The Japanese business newspaper Nikkei previously reported on the merger talks, which were not denied by the companies. A source informed the Financial Times that the merger might face political resistance in Japan due to potential job losses, as Nissan had earlier announced a plan to cut production by 20 percent, affecting 9,000 jobs.
Source: NOS