Nissan and Honda Explore Closer Collaboration, Dismiss Merger Rumors

Nissan Motor Corp. and Honda Motor Co. confirmed Wednesday that they are discussing closer collaboration but denied reports they have decided on a merger. Nissan’s share price soared nearly 24% in Tokyo after reports citing unnamed sources said it might merge with Honda to form the world’s third-largest automaking group. Honda’s share price fell as much as 3%. Nissan alliance member Mitsubishi Motors Corp. is also part of the talks.

Trading in Nissan’s shares was suspended but then resumed after the companies jointly issued a statement saying they were “considering various possibilities for future collaboration, but no decisions have been made.”\This news is rattling the industry at a time when manufacturers are struggling to shift from fossil fuel-driven vehicles to electrics. Relatively inexpensive EVs from China’s, Great Wall and Nio are eating into the market shares of U.S. and Japanese car companies in China and elsewhere. Japanese automakers have lagged behind big rivals in EVs and are now trying to cut costs and make up for lost time. The companies are exploring collaboration on electric vehicles like batteries and jointly research software for autonomous driving to adapt better to dramatic changes in the auto industry centered around electrification. A preliminary agreement between Honda, Japan’s second-largest automaker, and Nissan, third largest, was announced in March. A merger could result in a behemoth worth about $55 billion based on the market capitalization of all three automakers. Joining forces would help the smaller Japanese automakers add scale to compete with Japan’s market leader Toyota Motor Corp. and with Germany’s Volkswagen AG. Toyota itself has technology partnerships with Japan’s Mazda Motor Corp. and Subaru Cor

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nissan and Honda Reportedly to Explore MergerReports suggest that Nissan and Honda are planning to enter merger negotiations to bolster their competitiveness in the evolving global automotive landscape.
Source: NBCNews - 🏆 10. / 86 Read more »

Honda and Nissan Explore Merger to Rival ToyotaHonda Motor Co. and Nissan Motor Co. are in talks to merge, potentially creating a formidable competitor to Toyota Motor Corp. in Japan and globally. The proposed merger, still in preliminary stages, could involve a new holding company, with Mitsubishi Motors Corp. possibly joining the alliance.
Source: mercnews - 🏆 88. / 68 Read more »

Honda and Nissan Explore Possible MergerHonda and Nissan are in talks about a potential merger, which could see the two Japanese automakers combine forces to address recent challenges.
Source: ABC7Chicago - 🏆 284. / 63 Read more »

Honda and Nissan to Explore MergerThe Nikkei newspaper reported that Nissan and Honda are planning negotiations for a merger to enhance their competitiveness in the evolving automotive industry. The companies are considering a holding company structure and anticipate signing a memorandum of understanding soon. The report also suggests a potential future inclusion of Mitsubishi Motors, in which Nissan holds a significant stake, under the holding company.
Source: NBCDFW - 🏆 288. / 63 Read more »

Fed Decision Looms, Nasdaq Stumbles, Government Shutdown Nears, Nissan and Honda Explore MergerA confluence of events dominates the news cycle: the Federal Reserve's impending interest rate decision, the Nasdaq's longest losing streak in decades, the looming threat of a government shutdown, and potential merger talks between Nissan and Honda.
Source: CNBC - 🏆 12. / 72 Read more »