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Nissan-Honda merger: Japanese automakers announce plans to merge

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Japanese automakers Nissan and Honda have announced plans to work toward a merger that would catapult them to a top position in an industry in the midst of tectonic shifts as it transitions away from reliance on fossil fuels. The two companies said they signed an agreement on integrating their businesses on Monday.

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Honda’s president, Toshihiro Mibe, said Honda and Nissan will pursue unifying their operations under a joint holding company. Honda will initially lead the new management, retaining the principles and brands of each company. The aim is to have a formal merger agreement by June and to complete the deal by August 2026, he said.There are “points that need to be studied and discussed,” he said. “Frankly speaking, the possibility of this not being implemented is not zero.

Even after a merger Toyota, which rolled out 11.5 million vehicles in 2023, would remain the leading Japanese automaker. If they join, the three smaller companies would make about 8 million vehicles. In 2023, Honda made 4 million and Nissan produced 3.4 million. Mitsubishi Motors made just over 1 million.

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, told The Associated Press.

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Nissan, Honda Shares React to Merger SpeculationNissan's stock surged while Honda's dipped after reports that the Japanese automakers might merge under a holding company. The Nikkei newspaper reported that Honda and Nissan are planning to sign a memorandum of understanding soon, potentially bringing Mitsubishi Motors, in which Nissan holds a 24% stake, under the umbrella. While Nissan confirmed exploring collaboration possibilities, no decisions have been made.
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