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Honda and Nissan Plan Merger to Create Third-Largest Automaker

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Automotive Industry,Merger,Electric Vehicles

Honda and Nissan have agreed to explore a merger, aiming to create the world's third-largest automaker by sales. The move comes as the automotive industry undergoes a significant shift towards electric vehicles. Mitsubishi Motors, a smaller partner in Nissan's alliance, has also agreed to join the discussions. The goal is to finalize a merger agreement by June 2025 and complete the deal, listing the holding company on the Tokyo Stock Exchange, by August 2026. The merger would combine Honda, Nissan, and Mitsubishi's operations under a joint holding company, initially led by Honda. It is expected to create a company worth over $50 billion, allowing them to better compete with industry giants like Toyota and Volkswagen.

Monday, December 23, 2024 11:00AMJapanese 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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