Auto Giants Nissan and Honda Announce Merger, Mitsubishi Expected to Join

Japanese automotive giants Nissan and Honda have signed a memorandum of understanding to establish a joint holding company, according to their joint press release.

According to the agreement, the companies plan to complete the business combination by August 2026. The new holding company is expected to be created at that time. Honda will become a senior partner with greater influence in the new company. It will have the right to appoint most of the senior management positions, and the president of the holding will also be a Honda representative.

After the holding is established, its shares will be traded on the Tokyo Stock Exchange, while Honda and Nissan shares will be removed from public trading. 

According to the plan, cars will continue to be produced under two separate brands, but the companies will use a common vehicle platform and combine their engineering and research efforts to optimise costs and production capacity and strengthen their competitiveness.

Mitsubishi Motors, which is already a long-standing partner of Nissan, may also join the newly created holding. Its decision is expected by the end of January 2025.

It is noted that the creation of such a powerful association of automakers will allow this brand to compete not only with Toyota Motor (the world's top seller), but also with Chinese manufacturers, including BYD and Geely, which are rapidly gaining weight in the global market. Especially in terms of technological transition - from internal combustion engines to electric vehicles.

In spring, Nissan Motor Co. and Honda Motor Co. announced today a strategic partnership and agreed to launch a feasibility study on electric vehicles and other advanced technologies to cut costs and increase competitiveness.