Nissan and Honda Initiate Merger Talks

Nissan and Honda have initiated merger talks aimed at creating the world's third-largest automaker, a response to the increasingly competitive global car market, especially from Chinese manufacturers. The memorandum of understanding focuses on establishing a joint holding company and aims for a formal agreement by June 2025, with plans to list on the Tokyo Stock Exchange by August 2026. This collaboration comes as both companies face significant challenges, including declining profits and market share, particularly in North America and China. Nissan has recently cut its profit outlook and announced plans to reduce production and jobs, prompting concerns about the future of its UK operations. Honda CEO Toshihiro Mibe emphasized the necessity of joining forces to enhance competitiveness and innovate in response to evolving consumer demands and environmental regulations. Both companies stress that while they pursue integration, their individual brands will continue to exist and operate independently.