Japanese automakers Honda and Nissan have officially entered into merger discussions, aiming to create the world’s third-largest automotive group by sales.
The companies have signed a memorandum of understanding, with plans to finalize the merger by 2026.
Honda CEO, Toshihiro Mibe emphasized during a press conference on Monday that achieving greater scale is essential for competing in the rapidly evolving fields of electric vehicles and intelligent driving technologies.
He stated that a business integration with Nissan would provide the companies with “an edge that will not be possible under the current collaboration framework,” underscoring the strategic importance of the merger for innovation and market competitiveness.
Mibe added that the deal aims to share intelligence and resources, achieve economies of scale, and create synergies, all while maintaining and protecting the distinct identities of both brands.
As part of the merger, a holding company will be established to serve as the parent entity for both Honda and Nissan, with plans to list it on the Tokyo Stock Exchange.
Honda, being the larger entity, will nominate the majority of the integrated company’s board members.
Mibe stated that the merged group could generate a revenue of 30 trillion yen ($191.4 billion) and achieve an operating profit exceeding 3 trillion yen annually.
Honda CEO noted that, if approved, the integration would be a mid- to long-term initiative, with significant progress not expected to materialize until 2030 and beyond.
