Japan’s leading automakers Honda Motor and Nissan Motor are reportedly participating in talks on a potential merger between the two giants.
With talks igniting in December, the carmakers are reportedly making the move as a response against growing competition from Chinese carmakers, according to Fleet News.
If the merger gets the green-light, the new company could become the third-largest carmaker in the world.
The discussions have also been joined by Mitsubishi Motors, a long-time partner of Nissan.
Both companies have signed a Memorandum of Understanding in order to discuss the integration.
Honda Director and Representative Executive Officer Toshihiro Mibe said:
“Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”
Both companies will reportedly aim to become a world-class mobility company with sales revenue exceeding 30 trillion yen and operating profit of more than 3 trillion yen, if the integration is executed.
A definitive agreement concerning the business merger, including the share transfer plan, is expected to be announced in June 2025.
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