Honda and Nissan ‘eye merger’

Honda Motor and Nissan Motor are set to begin talks on a merger to help them better compete against Tesla and Chinese EV makers, according to the Nikkei newspaper.

The Japanese carmakers have increased ties this year amid a changing automotive market that has led to increased global competition and falling demand in Europe and the US.

Honda and Nissan issued identical statements in response to the Nikkei report saying no merger had been announced by either company, reports Reuters.

“As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths,” the companies said.

They add they will inform stakeholders of any updates at an appropriate time.

Honda’s market capitalisation is ¥5.95 trillion (NZ$67.4 billion) and Nissan’s is ¥1.17tn, reports Reuters. If the pair did merge, it would be the biggest in the industry since Fiat Chrysler and PSA joined forces in 2021 to create Stellantis.

Honda and Nissan, Japan’s second and third-biggest carmakers respectively behind Toyota, agreed in March to co-operate in their EV businesses. In August those ties were enhanced with a deal to work together on batteries, e-axles and other technology.

The Nikkei says the firms are looking to operate under a single holding company and are set to sign a memorandum of understanding for a new merged entity.

It also claims the companies want Mitsubishi Motors, in which Nissan has a 24 per cent stake, to operate under the holding company.