Honda and Nissan Plan Merger to Form World's Third-Largest Automaker

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Automotive Industry,Merger,Electric Vehicles

Japanese automakers Honda and Nissan have announced plans to merge, aiming to become the world's third-largest automaker by sales. The merger, supported by smaller Nissan alliance member Mitsubishi Motors, seeks to address the industry's shift away from fossil fuels and enhance competitiveness against global giants like Toyota and Volkswagen. The companies plan to establish a joint holding company with Honda initially leading management, while retaining both brands' identities. A formal merger agreement is targeted for June 2024, with a listing on the Tokyo Stock Exchange by August 2026.

TOKYO - Japanese automakers Honda and Nissan have announced plans to work toward a merger, forming the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

Automakers in Japan have lagged behind their big rivals in electric vehicles and are trying to cut costs and make up for lost time. 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 has struggled following a scandal that began with the arrest of its former chairman Carlos Ghosn in late 2018 on charges of fraud and misuse of company assets, allegations that he denies. He eventually was released on bail and fled to Lebanon.

Nissan also has years of experience building batteries and electric vehicles, and gas-electric hybird powertrains that could help Honda in developing its own EVs and next generation of hybrids, he said. “We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base,” Uchida said.

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