Honda and Nissan to Discuss Merger, Strengthen EV Market Position

Honda Motor and Nissan Motor are set to begin talks about a potential merger to combine resources and enhance their competitiveness against major global electric vehicle (EV) manufacturers, as reported by various media outlets.

According to a Nikkei report on Tuesday, the two companies are planning to create a single holding company and are expected to formalize the merger soon by signing a memorandum of understanding (MoU).

This move comes in response to growing competition from Chinese EV manufacturers, which has put pressure on traditional automakers struggling to generate profits from their electric vehicle initiatives. Honda and Nissan also plan to include Mitsubishi Motors, in which Nissan owns a 24% stake, under the new holding company. This would form one of the world’s largest automotive groups, according to the report.

Details about the ownership stakes of both companies and other aspects of the deal will be determined in the near future.