Two major Japanese automakers Honda and Nissan informed the Japanese government on December 23 about their plans to negotiate a merger, a government official said.
According to Kyodo News, the heads of the two companies held a press conference today, December 23, to announce the decision. A source familiar with the matter said that the two corporations aim to conclude merger negotiations by June 2025, a move that would create the world's third-largest automaker to compete with rivals from the US and China in the electric vehicle market.
Nissan CEO Makoto Uchida (left) and Honda CEO Toshihiro Mibe hold a joint press conference on merger talks in Tokyo on December 23, 2024.
Honda is Japan's second-largest automaker with a market capitalization of more than $40 billion, while Nissan is third with a value of about $10 billion. Kyodo reported that Honda and Nissan will operate under a single parent company, with Mitsubishi Motors Corp. considering joining later. Honda and Nissan will seek to share large development costs and reduce production costs by sharing components.
Electric vehicles are one of the most important segments for growth as electrification reshapes the global auto industry. Honda, Nissan and other Japanese automakers are said to be lagging behind competitors such as Tesla Inc (USA) and BYD (China).
In November, Honda had to cut its net profit forecast for the 2024-2025 fiscal year (ending March 2025) to 950 billion yen (more than 157 trillion VND), down 14.2% compared to last year. Also in November, Nissan announced plans to cut 9,000 jobs and 20% of its global production, and said that the company's business in the US and China was still struggling, according to Reuters.
Previously, Honda and Nissan agreed to launch a feasibility study on a strategic electric vehicle manufacturing partnership, including the development of related software technology, to cut costs and enhance competitiveness.
Source: https://thanhnien.vn/honda-nissan-thong-bao-sap-nhap-185241223154037096.htm
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