Japanese auto giants Honda and Nissan are in talks to set up a holding company, according to a person with knowledge of the matter. The talks, first reported by the Nikkei newspaper, would allow the two automakers to cooperate more closely on technology at a time when the industry is being rewritten by the likes of Tesla and Chinese rivals. The talks are aimed at setting up an umbrella holding company that Nissan and Honda would then fall under.
It was not immediately clear whether a new holding company was aimed at eventually establishing a full union between the two companies, although Nikkei said they were beginning merger talks. The two carmakers have increased ties in recent months as they wrestle with the changing EV landscape. As well as heavy competition, automakers also face stalling demand in Europe and the US, intensifying the pressures on them. Honda and Nissan on Tuesday issued identical statements saying no merger had been announced by either company. '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. In addition, French automaker Renault, a major Nissan shareholder, said it had no information and declined to comment. Over the past year, an EV price war launched by Tesla and Chinese automaker BYD has only intensified pressure on any companies losing money on the next-generation vehicles
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