Honda and Nissan Announce Merger Talks

Nissan and Honda have officially initiated merger talks, aiming to establish a joint holding company by August 2026, which would create the world's third-largest automotive group by sales, trailing only Toyota and Volkswagen. This strategic move is largely driven by increasing competition from Chinese automakers and Tesla in the electric vehicle (EV) market. Discussions may also involve Mitsubishi Motors, as Nissan is the largest shareholder, and a decision regarding Mitsubishi's inclusion is expected by January 2025. Both companies plan to finalize the merger details by June 2025, with an emphasis on enhancing supply chains, optimizing manufacturing processes, and expanding hybrid offerings. Analysts suggest the merger could address Nissan's current shortcomings in the hybrid market, as it lacks such models compared to its competitors. The automotive landscape is rapidly changing, prompting regulators to favor cooperation aimed at bolstering competitiveness among companies.