Japanese automakers Honda and Nissan are actively discussing the formation of a merger or a holding company to enhance resource sharing in response to transformative pressures from industry frontrunners like Tesla and emerging Chinese competitors. This potential collaboration, initially reported by Nikkei, seeks to bring the companies under a unified structure for more effective technological cooperation.
According to an anonymous source, the talks are focused on establishing an overarching holding entity, although the initial objective remains distinct from merging the two firms entirely. This strategic move comes as both companies face stagnant demand in key markets such as Europe and the U.S., alongside fierce competition in the electric vehicle (EV) sector.
Despite the growing ties between Honda and Nissan, both automakers clarified in concurrent statements that no merger has been formally announced. They emphasized their commitment to exploring various collaboration opportunities leveraging mutual strengths and assured stakeholders that updates will be communicated appropriately.
The dialogue about a potential holding company occurs amidst Honda and Nissan’s struggles in China, where their market share is being increasingly encroached upon by local EV leaders like BYD. Cumulatively, the two companies sold 7.4 million vehicles globally in 2023, but the rise of Chinese automakers presents substantial competition.
In recent advancements, Honda and Nissan solidified their partnership by aligning strategies in their EV segments, particularly focusing on essential components like batteries and e-axles. As part of burgeoning cooperative efforts, a memorandum of understanding is anticipated to be signed soon, expanding their collective initiative.
Moreover, there may be plans to incorporate Mitsubishi Motors into the proposed holding company, leveraging Nissan’s significant 24% ownership in the firm, thus broadening the alliance’s competitive scope.
Should this alliance come to fruition, it would mark one of the industry’s most significant collaborations since the 2021 merger between Fiat Chrysler and PSA to form Stellantis.
