- Negotiations have begun to merge Honda and Nissan
- The merger will bring the automakers under the holding company by August 2026
- EVs, hybrids, platforms, and software will be the core of the overlap
Honda and Nissan have begun negotiations aimed at curbing competition in electric vehicles, the automakers confirmed on Monday.
Car manufacturers signed a memorandum of understanding as the first step in merger 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 automakers.
A program designed for integrated car manufacturers working under a holding company with the delisting of both automakers from the Tokyo Stock Exchange by the end of July or August of 2026. The shares of both companies were then transferred to his new company.
A report from Japanese news agency Nikkei cited competition from Tesla and Chinese automakers in the EV segment as one of the main factors behind the merger.
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.
The total integration will 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.
Automakers have noted that the merger will allow for the optimization of production systems and facilities as well as the standardization of vehicle platforms.
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 discussion. Meanwhile, Nissan may lead the way in electrifying trucks and SUVs—including Honda's current body-on-frame models.
The story was updated on December 23 after the automakers confirmed the merger plans.