Japanese automakers Honda and Nissan have announced that they will merge into one company in August 2026, with the aim of rapidly developing electrification and improving integrated software to maintain competitiveness in the global market. On December 23, the two companies signed a memorandum of understanding to begin discussions on integrating their businesses under a new company. The goal is for Honda and Nissan to sign a final agreement by June 2025.
Leaders of Honda and Nissan at a joint press conference on December 23 in Tokyo, Japan
With a larger market capitalization, Honda will lead the initial integration process. Honda will nominate the parent company’s president and a majority of its internal and external directors. As part of the deal, Honda said it will buy back 1.1 trillion yen ($7 billion) worth of its own shares, equivalent to 24 percent of the total issued shares excluding treasury stock. The company will buy the shares on the market from January 6 to December 23, 2025.
In a joint press conference with his Nissan counterpart, Honda President and CEO Toshihiro Mibe said the merger "will help achieve real competitive power, which is not possible under the current cooperation framework between the two companies." Nikkei Asia quoted Mibe as emphasizing that this "is not a rescue of Nissan."
As electric vehicles have recently exploded, Japanese automakers are under pressure to keep up with rivals like Tesla (USA) and BYD (China). "As new players emerge one after another and the market power structure is changing, economies of scale will become stronger than before," Nissan President and CEO Makoto Uchida was quoted as saying by Nikkei Asia .
The parent company after the merger is expected to "continue to coexist and develop the brands held by Honda and Nissan equally". The parent company's shares are planned to be newly listed, while the separate shares of Nissan and Honda will be delisted. As a result, the merged company is estimated to have revenue of about $200 billion, becoming the third largest automaker in the world by sales volume, behind only Toyota and Volkswagen. In 2024, Honda is expected to sell about 4.1 million vehicles and Nissan about 3.4 million vehicles. In recent years, Nissan's business results have encountered many difficulties, with sales falling seriously.
Honda, Nissan begin merger talks in historic turn
Not stopping there, another Japanese automaker, Mitsubishi, may also join the merger talks between Honda and Nissan. In a separate statement, Mitsubishi representatives announced that by the end of January 2025, the company will make a decision on whether or not to participate in the business integration between Nissan and Honda.
If there is a joint business collaboration or integration, "We can support them by using our strengths, including the ASEAN business and the compact pickup business," said Takao Kato, Mitsubishi's president and CEO.
Source: https://thanhnien.vn/thuong-vu-khung-cua-nganh-o-to-toan-cau-185241224194130401.htm
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