Japanese car giants Honda and Nissan announce merger plans

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Honda ニュース

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Deal would catapult firms into top position in industry undergoing tectonic shifts as it transitions away from fossil fuels

Honda and Nissan Motor took their first historic steps toward merging and creating a new force in the world’s automotive industry on Monday as aggressive competition from China forced legacy carmakers to rethink their business models.

A holding company will be created to house the new entity and should be listed by August 2026, they said, adding that Honda will be able to nominate a majority of directors of the holding company. Toyota has stakes in Subaru, Suzuki, and Mazda, creating a powerhouse of brands backed by its top-notch credit rating.

In China, the soaring popularity of locally made EVs has foreign brands fighting for survival, and Japanese carmakers there are stuck with too much capacity. Honda and Nissan have both had to pare back staffing and production, while Mitsubishi has all but extricated itself from China, the world’s biggest car market.

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