Honda and Nissan Plan Major Merger

Honda and Nissan have announced plans for a merger that would create the world's third-largest automaker by sales, following a memorandum of understanding signed on Monday. The proposed joint holding company, expected to be established by August 2026, will focus on electrification and software integration to enhance competitiveness in a rapidly changing automotive market. Mitsubishi Motors, a smaller member of Nissan's alliance, will also be involved in the integration discussions. The merger aims to address declining sales and intensifying competition from electric vehicle manufacturers, particularly in the Chinese market. The companies plan to finalize negotiations by June 2025, with the merger potentially valued at over $50 billion. This consolidation reflects a broader trend in the industry as companies adapt to the shift from fossil fuels to electric vehicles.