Honda and Nissan are discussing a potential merger. Both companies face significant challenges. They confirmed the talks in a joint statement but did not provide details. Nikkei first reported the news.
“As announced in March, Honda and Nissan are exploring various possibilities for future collaboration,” the statement said. “We will inform stakeholders when there are updates.”
Mitsubishi is also part of the discussions. Honda and Nissan confirmed Mitsubishi’s involvement, but Mitsubishi has not commented.
The two companies have already partnered on electric vehicle (EV) and battery technology. A merger could strengthen their efforts and help them tackle global market challenges.
Both automakers have struggled in China, the world’s largest car market. Domestic brands like BYD have surpassed Honda and Nissan in EV technology and pricing.
Nissan faces challenges after the 2019 departure of CEO Carlos Ghosn. He fled Japan amid financial misconduct allegations. His exit weakened Nissan’s alliance with Renault and Mitsubishi. Nissan recently reported a 90% drop in operating income for the first half of the fiscal year.
Honda, though larger, faces its own difficulties. Its goal to sell only zero-emission vehicles by 2040 has been slowed by low gas prices, limited charging infrastructure, and fierce competition in the U.S. and Europe.
The merger talks reflect the automakers’ need to adapt as the industry evolves rapidly
