Honda and Nissan announce merger plans
Japanese companies Honda and Nissan have announced plans to merge in a move which will create the world’s third largest vehicle manufacturer.
Mitsubishi, which is part of the Nissan alliance, will also be part of the new joint company which will have a combined value of around £40bn.
The deal is expected to be finalised by next June.
The news comes in response to growing competition from Chinese manufacturers coupled with challenges posed by the industry’s shift towards electrification and self-driving vehicles.
Honda and Nissan agreement
Honda and Nissan signed a preliminary agreement in March and in August, together with Mitsubishi, announced they would share electric vehicle components and pool research resources around electric and autonomous vehicles.
The announcement comes after a preliminary agreement between Honda and Nissan was announced in March. Then in August Nissan, Honda and Mitsubishi announced that they would share components for electric vehicles while also jointly researching software for autonomous driving.
Toshihiro Mibe, Honda director and representative executive officer, said:
“Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing,”
Toyota remains the largest vehicle manufacturer with 11.5 million units produced in 2023, ahead of Volkswagen, compared to the eight million combined of Honda, Nissan and Mitsubishi.
