Honda and Nissan Pursue Merger Talks

Honda and Nissan have initiated merger discussions amid intense competition from Chinese automakers, aiming to form a holding company by August 2026. This potential merger, which also includes Mitsubishi Motors, aims to create the world’s third-largest automotive group, consolidating resources to better compete in the electric vehicle market against rivals like Tesla. The decision comes as Honda and Nissan face declining sales and the need for significant investment in electric vehicle technology. Discussions are being fast-tracked due to pressures from aggressive Chinese manufacturers, with Nissan's recent struggles in profitability further motivating this alliance. The merger talks are expected to conclude by June 2025, with Mitsubishi set to decide on its involvement by the end of January.