Japanese automakers Honda and Nissan have announced plans to work toward a merger that would form the world’s third-largest automaker by sales, as the industry undergoes dramatic changes in its transition away from fossil fuels.
A merger could result in a behemoth worth more than $US50 billion based on the market capitalisation of all three automakers. Together, Honda, Nissan and Mitsubishi would gain scale to compete with Toyota Motor and with Germany’s Volkswagen AG. Toyota has technology partnerships with Japan’s Mazda Motor and Subaru.
Nissan, Honda and Mitsubishi earlier agreed to share components for electric vehicles like batteries and to jointly research software for autonomous driving to adapt better to electrification. From Nissan, Honda could get truck-based body-on-frame large SUVs such as the Armada and Infiniti QX80 that Honda doesn’t have, with large towing capacities and good off-road performance, Sam Fiorani, vice president of AutoForecast Solutions, toldNissan also has years of experience building batteries and electric vehicles, and gas-electric hybrid powertrains that could help Honda in developing its own EVs and next generation of hybrids, he said.
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