Monday, December 23, 2024 11:00AMJapanese automakers Honda and Nissan have announced plans to work toward a merger, forming the world's third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.
Automakers in Japan have lagged behind their big rivals in electric vehicles and are trying to cut costs and make up for lost time. Nissan's CEO Makoto Uchida said there had been no direct approach to his company from Foxconn. He also acknowledged that Nissan's situation was "severe." Nissan has struggled following a scandal that began with the arrest of its former chairman Carlos Ghosn in late 2018 on charges of fraud and misuse of company assets, allegations that he denies. He eventually was released on bail and fled to Lebanon.
Nissan also has years of experience building batteries and electric vehicles, and gas-electric hybird powertrains that could help Honda in developing its own EVs and next generation of hybrids, he said. "We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base," Uchida said.
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