Honda, Nissan, Mitsubishi Eye Mega-Merger To Compete in EV Race | V3Cars

The news comes after the 3 companies signed a memorandum of understanding (MoU) to initiate discussions and considerations towards a business integration. The goal is to reach a definitive agreement by the end of January 2025. This integration would likely involve the establishment of a joint holding company, according to a statement released by the companies.

Why Are Nissan And Honda Planning To Merge?

Japanese automakers have faced mounting pressure in recent years as Chinese EV manufacturers like BYD and startups like Nio have aggressively captured market share. Additionally, Tesla continues to dominate the premium EV segment. This merger could be a strategic move for Honda, Nissan, and Mitsubishi to combine resources, R&D efforts, and production capabilities to compete more effectively.

Nissan-Honda Merger – Details And Challenges 

At the press conference, Honda officials stated discussions of a possible merger have already begun and the 2 brands will come to a decision by the end of January 2025. The potential merger could be finalised as early as June 2026, with a target completion date in 2026. The new holding company would reportedly be led by a president appointed by Honda.

However, significant challenges lie ahead. Nissan, in particular, is facing a financial crisis due to slumping sales in key markets like the US, China and India. This has forced them to slash jobs, production capacity, and significantly lower their annual profit outlook.

Earlier talks were reportedly complicated by interest from Taiwanese manufacturer Hon Hai Precision Industry (Foxconn) in acquiring Nissan. However, it seems Foxconn is taking a wait-and-see approach to observe how the merger discussions between the Japanese companies unfold.

The potential merger would effectively divide the Japanese auto industry in 2, pitting the Honda-Nissan-Mitsubishi alliance against Toyota and its network of partnerships with Mazda, Subaru, and Suzuki.

This development comes after Honda, Nissan, and Mitsubishi announced plans to collaborate on developing battery, software, and other EV technologies earlier this year. The potential merger signifies a significant step towards a more comprehensive alliance between the 3 companies.

V3Cars will continue to follow this story closely and provide updates as they become available.

Also Read: MG Cyberster Electric Sportscar Teased – To Debut In January 2025

Note: If you want to buy a new car, Calculate Car Loan EMI with V3Cars