2 minute read - 23rd December 2024
Nissan and Honda announce plans to explore merger
Nissan and Honda have signed a memorandum of understanding (MOU) to begin discussing a potential merger, integrating their businesses through a joint holding company.
To accelerate their efforts toward achieving a carbon-neutral and zero-traffic-fatality society, Nissan and Honda signed an MOU in March regarding a strategic partnership in the era of vehicle intelligence and electrification. Since then, the two companies have held discussions about collaborating in various fields.
In August, both companies signed a further MOU to deepen the strategic partnership’s framework. They also announced that they had agreed to carry out joint research in fundamental technologies related to platforms for next-generation software-defined vehicles (SDVs), particularly in the areas crucial for intelligence and electrification, to advance focused discussions toward more concrete collaboration.
The companies say the latest MOU is intended to maintain global competitiveness and allow them to continue delivering more attractive products and services to customers worldwide. In a statement, they said they anticipate optimising their manufacturing plants and improving collaboration through the shared use of production lines will substantially improve capacity utilisation, leading to a decrease in fixed costs.
Nissan and Honda have agreed to explore a potential merger. In a statement, they say this could result in the shared use of production lines (Nissan Sunderland plant pictured) / Picture: Nissan GB
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If a merger went ahead, both companies would aim to integrate their respective management resources, such as knowledge, human resources, and technologies, enhance their ability to respond to market changes, and expect to improve mid- to long-term corporate value.
Makoto Uchida, director, president, CEO and representative executive officer at Nissan, said: “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realised, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Toshihiro Mibe, director and representative executive officer at Honda, 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. Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”
