(Dan Tri) - According to informed sources, Honda and Nissan are discussing a merger, creating the world's third largest automaker in terms of output.
Japan's second- and third-largest automakers are considering creating a holding company to compete with Tesla and China's growing electric vehicle makers, such as BYD.
In the context of increasingly fierce global competition in the electric vehicle sector, an alliance between Honda and Nissan could be a suitable choice (Photo: Honda Global).
Honda, Nissan, and Mitsubishi Motors said they are considering various possibilities for future cooperation, but no decisions have been made.
The merger would create an alliance as large as Toyota Motor Corp. and Volkswagen AG, with combined sales of about 8 million vehicles, including Mitsubishi Motors.
Honda and Nissan agreed in March to begin exploring the possibility of a strategic partnership in electric vehicle production and software technology to cut costs and increase competitiveness. Mitsubishi Motors joined the talks in August.
At a press conference in August, Honda President Toshihiro Mibe said the discussions did not include a merger, but he did not deny that it could happen in the future.
Global automakers are scrambling to preserve financial resources to cover the rising costs of developing electric vehicles due to expensive batteries and huge resources to develop software such as autonomous driving features.
Honda, which prefers to develop its own models, has been increasing its partnerships with companies such as Sony and General Motors (GM) in recent years.
Last year, Nissan agreed to review its decades-long alliance with Renault SA, reducing the French automaker’s influence. Nissan is looking for ways to increase its competitiveness.
Honda and Nissan are seeing sales slump in China, where domestic brands with cheaper electric vehicles are eating into Japanese automakers' market share.
Last month, 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, due to lower-than-expected sales in China.
Also in November, Nissan announced plans to cut 9,000 jobs and 20% of its global production, saying its business in the US and China remained struggling.
In 2023, Honda and Nissan achieved sales of 3.98 million and 3.37 million vehicles respectively globally.
Meanwhile, Toyota sold 11.23 million vehicles in 2023, maintaining its world leading position for the fourth consecutive year, followed by Volkswagen with 9.24 million vehicles.
Source: https://dantri.com.vn/o-to-xe-may/honda-va-nissan-co-the-se-sap-nhap-20241218122218658.htm
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