Nissan and Honda are in talks to merge, aiming to become the world’s third-largest carmaker by sales. Both companies see the move as a way to better compete in the growing electric vehicle market, especially against Tesla and Chinese manufacturers. Honda CEO Toshihiro Mibe said the merger would provide an "edge that will not be possible under the current collaboration framework," according to CNBC.
Nissan and Honda are in talks to merge, with plans to finalize the deal by June 2025. If the merger happens, they would create a new company with revenues of 30 trillion yen ($191.4 billion) and operating profits of over 3 trillion yen. Honda is likely to appoint most of the new company's board members. Major changes from the merger are not expected until at least 2030, as reported by CW39.
Nissan, facing financial struggles, is in talks to merge with Honda to improve its competitiveness. The company plans to cut 9,000 jobs and reduce global production by 20%. Mitsubishi Motors, Nissan's partner, may also join the merger, with a decision due by January 2025. Nissan CEO Makoto Uchida said the merger talks are not abandoning their turnaround plans but are a step toward future growth, stating, "After doing this turnaround action for future development, future growth, we need to look at ultimate size and growth." Honda CEO Toshihiro Mibe warned, "If Nissan and Honda fail to stand on their own feet the business integration talks will not come to fruition," as stated by CNBC.
