Japan’s Honda and Nissan in preliminary merger talks: reports

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Honda and Nissan, two of Japan’s biggest automakers, are in early discussions about a possible merger, according to reports

A tie-up would help them better compete against Tesla and other electric vehicle makers, the Nikkei, the Financial Times and others said.

“We are discussing possibilities for cooperation between Honda and Nissan in the future, in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided,“ the spokesman told AFP. Honda and Nissan are looking to operate under a single holding company and will soon sign a memorandum of understanding for the new entity, the Nikkei and other outlets said, citing people familiar with the matter.

Their statements said they were “exploring various possibilities for future collaboration, leveraging each other’s strengths”, as previously announced. Honda announced plans in May to double investment in electric vehicles to $65 billion by 2030, part of its ambitious target set three years ago of achieving 100 percent EV sales by 2040.It said in March that 16 of the 30 new models it plans to launch over the next three years would be “electrified”.

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