Nissan & Honda To Announce Merger Within Weeks
Honda and Nissan are set to unveil the specifics of their merger plan in mid-February, according to a report by Kyodo News on Friday, citing company officials.
Japan’s second- and third-largest automakers by volume had initially planned to provide merger details by the end of January detailing their intention to merge under a holding company in 2026 with both brands continuing to operate independently under its umbrella.
At a December 23 press conference led by Honda CEO Mibe Toshihiro and Nissan CEO Uchida Makoto, Mitsubishi Motors CEO Katō Takao also expressed its intent to join the negotiations. Mitsubishi, currently part of an alliance with Nissan and France’s Renault, later withdrew from the talks.
Had the three manufacturers merged, they would have formed the world’s third-largest global car manufacturing group, trailing only Toyota and Volkswagen in sales volume. Even without Mitsubishi, a Honda-Nissan merger is expected to place the new entity among the world’s top five car makers.
Honda and Nissan had already announced plans to collaborate on electric vehicle (EV) development, which focused on software, batteries, motors, and power electronics.
However, progress stalled as Nissan grappled with financial struggles. Reports surfaced in October that the company was prioritising efforts to address its deteriorating financial health.
On November 7, Nissan reported a 94% year-on-year drop in net profit for the April–September 2024 period, falling to ¥19.2 billion on weak sales in key markets including Japan, North America, and China.
In response, Nissan CEO Uchida announced a major restructuring plan, including laying off 9,000 employees - about 7% of its global workforce - and cutting production capacity by 20%.
Amid these financial struggles, Taiwanese electronics giant Foxconn approached Japan’s Ministry of Economy, Trade, and Industry, as well as Nissan’s primary lender, Mizuho Bank, regarding a possible takeover. This development is understood to have prompted Honda and Nissan to accelerate their merger discussions in an effort to prevent an external acquisition.
