Nissan and Honda Reportedly Enter Merger Discussions

The two automakers might join forces to reduce costs and boost competitiveness

Earlier this month, reports emerged that Honda was considering acquiring a stake in Nissan. Now, it appears a full-scale merger could be on the horizon.

According to Nikkei, the two automakers have initiated merger discussions. However, Reuters reported that neither company confirmed nor denied this, instead issuing statements highlighting their existing partnership and their intent to “explore various possibilities for future collaboration, leveraging each other’s strengths.” Both companies assured shareholders they would be informed of any updates.

The absence of a direct denial suggests that something significant might be developing. In fact, both companies hinted at potential news in the future. Earlier reports even suggested Honda could take a stake in Nissan as soon as next month.

While the outcome remains uncertain, Nikkei claims the two firms are considering operating under a single holding company, potentially including Mitsubishi. If realized, this merger would rank as one of the largest since the creation of Stellantis.

If the merger proceeds, the new entity could encompass Acura, Honda, Nissan, Infiniti, and Mitsubishi. How the Renault–Nissan–Mitsubishi Alliance fits into this equation remains uncertain and open to speculation.

The timing of these reported talks is noteworthy, as Nissan faces significant challenges in several markets. Over the past decade, Nissan’s U.S. sales have dropped by 26.3%, while Infiniti has seen an even sharper decline of nearly 45%. The company is also experiencing difficulties in China, a trend impacting many foreign automakers in the region.

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  • Growing up with a father who was a mechanic I had an appreciation for cars and motorcycles from an early age. I shared my first bike with my brother that had little more than a 40cc engine but it opened up a world of excitement for me, I was hooked. As I grew older I progressed onto bigger bikes and...

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