Honda, Nissan and Mitsubishi have confirmed that the three companies are officially beginning discussions for a potential merger. The companies have signed a three-party memorandum of understanding (MoU). Under the agreement, a holding company will be established through joint share transfer for the three companies. It was also stated that Mitsubishi is still evaluating whether it wants to join the merger. Mitsubishi Motors is expected to confirm its decision towards the end of January 2025.
Also Read: Honda And Nissan In Talks To Join Forces; New Conglomerate Will Focus On EVs
Upon forming the partnership, both Nissan and Honda – having signed a separate MOU – plan to standardise vehicle platforms and reduce costs, while also integrating research and development functions. The companies also plan to optimise their manufacturing functions and facilities through sharing of production lines, and by streamlining supply chain operations. The companies aim to take the fight to their Chinese rivals and Tesla, which are currently leaders in the global EV sector. The companies plan to officially complete the merger by August 2026, after which the new parent company of the companies will be listed on the Tokyo Stock Exchange. It was also stated that Honda will nominate a majority of each of the internal and external directors to run the joint holding company, towards the end of the merger.
Also Read: Nissan Slashes Global Production Capacity By 20%, Cuts 9,000 Jobs Worldwide
Nissan had recently slashed 9,000 jobs due to financial troubles
Recent reports suggested that Nissan was in immense financial turmoil, and had registered a massive drop in income and had slashed 9,000 jobs in the process. This partnership will prove to be a boon for the company, which is now planning a turnaround in sales by sharing its resources with Honda, and also possibly Mitsubishi. The collaboration will also result in the development of a series of EVs with high-tech battery packs, and advanced software that will enable features such as autonomous driving. It was stated during the press conference that the partnership will not only be for the automotive business, but also for the two-wheeler and aviation businesses.
