Makoto Uchida, president and CEO of Nissan Motor, and Toshihiro Mibe, Honda Motor president and CEO, attend their joint press conference in Tokyo, Japan Mar 15, 2024. Japanese auto giants Honda Motor and Nissan Motor will start negotiations to merge as they face growing competition from bigger global electric vehicle makers, the Nikkei newspaper reported on Tuesday .
"As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths," the companies said in separate statements, adding they will inform stakeholders of any updates at an appropriate time. The two had combined global sales of 7.4 million vehicles in 2023, but are grappling with challenges from EV makers, particularly in China, where BYD and others have surged ahead.Logos at a Nissan showroom are seen in Ginza shopping district in Tokyo, Mar 31, 2023.
Volkswagen has threatened to close plants in Germany for the first time in its 87-year history, cut jobs and slash wages to reduce costs and boost profit. Last week, Europe's top carmaker said it will close its Audi plant in Brussels next year. The automakers are looking to operate under a single holding company and are expected to sign a memorandum of understanding soon for the new merged entity, the Nikkei reported.
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