Honda and Nissan are joining forces in a bid to compete with Chinese electric vehicle manufacturers. The merger, which will see a new holding company listed on the Tokyo Stock Exchange, is not a rescue for struggling Nissan.
Honda and its struggling rival Nissan agreed to launch talks on a merger seen as a bid to catch up with Chinese rivals on electric vehicles . But Honda ’s CEO insisted that it was not a bailout for Nissan , who last month announced thousands of job cuts and reported a 93% plunge in first-half net profit. “This is not a rescue,” Toshihiro Mibe told reporters, stressing that one condition for the merger would be for Nissan to complete its so-called “turnaround” plan.
The two firms along with Mitsubishi Motors said they had signed a memorandum of understanding to start discussions on integrating their business under a new holding company. Citing “dramatic changes in the environment surrounding both companies and the automotive industry”, a joint statement said the companies planned to list the holding company on the Tokyo Stock Exchange in August 2026. It comes after reports said Taiwanese electronics behemoth Foxconn had unsuccessfully approached Nissan to acquire a majority share. Honda and Nissan, Japan’s number two and three automakers after Toyota, already agreed in March to explore a strategic partnership on software and components for EVs among other technologies. The companies want to seal their merger deal in June next year, but it is unlikely to be a marriage of equals. Honda will nominate the president of the new holding company, whose board will be mostly made up of Honda executives, their statement said
Merger Automotive Industry Electric Vehicles Honda Nissan
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