- Honda and Nissan merger talks may begin
- The merger will bring the automakers under a holding company
- EVs, hybrids, and software could be at the heart of potential overlap
Honda and Nissan are close to starting merger talks aimed at curbing competition in electric vehicles, Nikkei reports.
A Japanese daily newspaper reported on Tuesday that Honda and Nissan are close signing a memorandum of understanding as a first step to consolidate talks, with Mitsubishi potentially joining as a third partner. Nissan already owns about 34% of Mitsubishi's shares, and there has been platform sharing between the two companies.
The current system is designed for integrated car manufacturers working under a holding companyaccording to the report, which cites competition from Tesla and Chinese automakers in the EV segment as one of the main factors driving the merger talks.
2023 Nissan Ariya in 4orce
This follows the March announcement by Honda and Nissan of a partnership agreement”strategic relationships in the fields of vehicle electrification and intelligence” that is expected to include EVs, hybrids, and software. Mitsubishi was asked to join the partnership in August. The current alliance between Nissan, Mitsubishi, and the French automaker has also partnered with Honda in the past, most recently in the battery leasing joint venture Altna.
The combined sales of Honda and Nissan in 2023 reached more than 8 million vehicles. That would make the automaker the third largest by sales behind Toyota and Volkswagen Group, which sold 11.2 million and 9.2 million vehicles in 2023.
Full integration may be a they needed a Nissan lifeline. The automaker in October announced plans to lay off about 9,000 workers, representing 6.7% of its global workforce, and reduce production capacity by 20% due to declining sales, mainly in the US and China.
2025 Honda Civic Hybrid
Both automakers are in the midst of an EV reset, with Honda preparing to roll out its lineup starting in 2026 and Nissan preparing the next-generation Leaf, as well as larger models to be assembled in Mississippi.
Hybrids can present more immediate opportunities to be combined. Honda's two-motor hybrid system may replace Nissan's e-Power hybrid, which still hasn't arrived in the US after years of talks. Meanwhile, Nissan may lead the way in electrifying trucks and SUVs—including Honda's current body-on-frame models.