Honda and Nissan have signed a memorandum of understanding to explore a merger, which could create the world's third-largest automaker.The two companies will work towards a formal merger agreement by June 2025. / Photo: Reuters
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. A merger could result in a behemoth worth more than $50 billion based on the market capitalization of all three automakers.
Nissan's CEO Makoto Uchida said there had been no direct approach to his company from Foxconn. He also acknowledged that Nissan's situation was “severe.” Nissan, Honda and Mitsubishi announced in August that they would share components for electric vehicles like batteries and jointly research software for autonomous driving to adapt better to dramatic changes centred around electrification, following a preliminary agreement between Nissan and Honda set in March.
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