Japan’s Honda and Nissan are reported to begin merger talks

Detroit — Japanese automaker nissan motors and honda motor industry The Nikkei Shimbun reported on Tuesday that the two companies plan to enter into merger negotiations to improve their competitiveness in the rapidly changing global auto industry.

According to reports, Honda and Nissan are considering operating their businesses under a holding company and plan to sign a memorandum of understanding soon. The company is also considering eventually bringing Mitsubishi Motors, Nissan’s largest shareholder with a 24% stake, under its holding company..

According to the Nikkei Shimbun, Nissan, Honda and Mitsubishi combined sell more than 8 million cars a year. That would make the company one of the world’s largest automakers, but still behind fellow Japanese automakers. toyota motor vehicle11.2 million units in 2023, similar to German automakers volkswagenreported vehicle sales of 9.2 million units last year.

Honda and Nissan issued similar statements, neither confirming nor denying the report, with Honda saying, “The reported content was not announced by our company.” “As announced in March of this year, Honda and Nissan are leveraging each other’s strengths and exploring various possibilities for future collaboration. We will update our stakeholders at the appropriate time as we receive any updates.” There is.

The merger report follows the two Japanese automakers forming a strategic alliance to share auto parts and software earlier this year.

The partnership would be the largest auto industry merger since Fiat Chrysler merged with France-based PSA Group. Stellantis In January 2021.

Automotive consultants and other experts have recently called for more mergers and acquisitions to share costs and better compete with rapidly expanding Chinese automakers and the U.S. all-electric vehicle leader. tesla.

Honda’s U.S.-listed shares closed up about 1% on Tuesday. over the counter nissan stockwhich is in the midst of a restructuring, soared more than 11%.