Japanese automotive giants Honda and Nissan are reportedly considering a merger, according to a report by the Nikkei financial newspaper. The companies have previously announced plans to collaborate on developing electric vehicle platforms and batteries to compete in the growing EV market. Nikkei suggests the two firms might merge under a single holding company, potentially including Mitsubishi Motors, in which Nissan holds a 24% stake.
Nissan and Honda are Japan's second and third largest car manufacturers, selling nearly 7.5 million vehicles worldwide last year. Both companies have issued statements denying the merger report, saying they will inform stakeholders of any developments at an appropriate time. The companies' existing EV partnership hints at the potential benefits of a closer collaboration. Speaking about the EV collaboration, Nissan CEO Makoto Uchida highlighted the aggressive entry of new players into the market. A merger between these two companies could significantly impact the global automotive industry, particularly considering Nissan's long-standing alliance with French firm Renault. This isn't the first time merger talks have surfaced; in 2020, the Financial Times reported that then-Japanese Prime Minister Shinzo Abe had encouraged discussions due to concerns about the strained relationship between Nissan and Renault. However, both companies reportedly rejected those proposals at the time
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