Two of Japan's leading automakers, Honda and Nissan, have formally announced they are exploring plans to merge. The move would create the world's third-largest car manufacturer by revenue ($191B) after Toyota and Volkswagen (see more).
Honda and Nissan signed a memorandum of understanding yesterday, with the goal of establishing a joint holding company by August 2026 and bringing in Nissan partner Mitsubishi. Analysts view the deal as a lifeline for Nissan, which announced plans to slash 9,000 jobs last month and whose profits have tumbled partly due to an outdated model lineup in the US and lagging sales in China.
However, Honda and Nissan executives said the merger would aid in developing new technologies amid a transition from fossil fuels, including managing the costs of building intelligent cars and electric vehicles. Discussions are set to conclude in June 2025. Honda shares closed up nearly 13% on the news.
See other major automaker mergers and acquisitions here.
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