Japanese automakers Nissan Motor Corp. and Honda Motor Co. confirmed Wednesday that they are discussing closer collaboration but denied reports they have decided on a merger. Nissan’s share price soared more than 22% after reports citing unnamed sources said it might merge with Honda to form the world’s third largest automaking group.
Trading in Nissan’s shares was suspended but then resumed after the companies issued a statement that said they were “considering various possibilities for future collaboration, but no decisions have been made.”Nissan has an alliance with Renault SA that is under review. It recently announced it was slashing its headcount by 9,000 and cutting its global production by a fifth due to weaker sales in China and the U.S. Honda, Japan’s second-largest automaker, and Nissan, third largest, agreed in March to study a strategic partnership for making electric vehicles. Joining forces would help the two companies gain larger scale to compete with market leader Toyota Motor Corp. and with Germany’s Volkswagen AG
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Honda and Nissan reportedly open merger talksWill Shanklin has been writing about gadgets, tech and their impact on humanity since 2011. Before joining Engadget, he spent five years creating and leading the mobile technology section for New Atlas. His work has also appeared on SlashGear, TechRadar, Digital Trends, AppleInsider, Android Central, HuffPost and others.
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