ALBAWABA - Honda Motor, the Japanese multinational conglomerate automotive manufacturer, and Nissan Motor, the Japanese multinational automobile manufacturer, announced plans to merge in 2025.
Nissan and Honda form world’s-third largest automaker
Nissan and Honda announced the merge of the two large companies, forming the world’s-third largest automaker. As the automotive industry is going through challenges recently, this newly announced joint will create the world’s largest automaker company by sales.
Nissan and Honda's presidents signed a Memorandum of Understanding (MoU) today, while discussions about Mitsubishi Motors joining the merger were initiated.
Toshihiro Mibe, Honda’s president, stated: “Honda and Nissan will pursue unifying their operations under a joint holding company. Honda will initially lead the new management, retaining the principles and brands of each company. The aim is to have a formal merger agreement by June and to complete the deal by August 2026.”
Notably, Japan’s automotive sector is facing significant struggles and challenges amid the rise of the electric vehicle industry and the fluctuation of global fuel prices.
“We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base,” said Makoto Uchida, President and CEO of Nissan Motor Corporation.
Nissan announced last November that it would cut around 9,000 jobs (6% of its workforce) globally and reduce its production by 20% after reporting quarterly losses of approximately $61 million.
On the other hand, Honda’s profits declined by 20% in the first half of 2024.
