- Honda Motor Co and Nissan Motor Co are considering building cars at each other’s factories as part of plans to deepen cooperation and potentially merge.
Honda and Nissan are expected to announce the start of business integration talks on Monday, two people familiar with the matter told Reuters, as the automakers struggle to survive in a rapidly changing industry landscape.
The two automakers will hold a board meeting on the talks on Monday, people familiar with the matter said, followed by a joint news conference in which Nissan’s alliance partner Mitsubishi Motors is also expected to attend.
The merger of the three Japanese brands will create the world’s third-largest auto group by vehicle sales after Toyota and Volkswagen, and will be the largest industry-shaping deal since Stellantis was founded in 2021.
Honda and Nissan have been exploring ways to strengthen their partnership, including establishing a joint holding company, as they face growing challenges from Tesla and Chinese rivals, Reuters reported last week.
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Japan’s second-largest automaker Honda and third-largest automaker Nissan said in March they were considering cooperation on electrification and software development. They agreed to conduct joint research and in August expanded their cooperation to include Mitsubishi Motors.
Last month, Nissan announced plans to cut 9,000 jobs and cut global production capacity by 20% after sharp sales declines in key markets such as China and the United States. Honda also reported lower-than-expected profit results due to lower sales in China.
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Forms of integration being discussed include Honda supplying hybrid vehicles to Nissan and joint use of Nissan’s vehicle assembly plants in the UK, Kyodo news agency reported on Saturday.
According to public broadcaster NHK, the two companies aim to complete integration negotiations in June 2025.
French automaker Renault, Nissan’s largest shareholder, is open to a deal in principle and will study all implications of a tie-up, sources said.
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First published date: December 23, 2024 08:33 AM IST