Honda, Nissan announce merger

A government official said that two major Japanese automakers, Honda and Nissan, informed the Japanese government on December 23rd of their plans to negotiate a merger.

According to Kyodo News, the heads of the two companies held a press conference today, December 23, to announce the decision. A source familiar with the matter said that Honda and Nissan aim to finalize merger negotiations by June 2025, a move that would create the world's third-largest automaker to compete with rivals from the US and China in the electric vehicle market.

Nissan CEO Makoto Uchida (left) and Honda CEO Toshihiro Mibe hold a joint press conference in Tokyo on December 23, 2024, regarding merger talks.

Honda is Japan's second-largest automaker with a market capitalization of over $40 billion, while Nissan ranks third with a value of approximately $10 billion. Kyodo, citing sources, reported that Honda and Nissan will operate under a single parent company, and Mitsubishi Motors Corporation is considering joining later. Honda and Nissan will seek to share significant development costs and reduce production costs by sharing components.

Electric vehicles are one of the most important segments for growth as electrification reshapes the global automotive industry. Honda, Nissan, and other Japanese automakers are considered to be lagging behind competitors such as Tesla (USA) and BYD (China).

In November, Honda cut its net profit forecast for fiscal year 2024-2025 (ending March 2025) to 950 billion yen (over 157 trillion VND), a 14.2% decrease from last year. Also in November, Nissan announced plans to cut 9,000 jobs and 20% of global production, while stating that its business in the US and China was still struggling, according to Reuters.

Previously, Honda and Nissan had agreed to conduct a feasibility study on a strategic electric vehicle manufacturing partnership, including the development of related software technology, in order to reduce costs and enhance competitiveness.

Source: https://thanhnien.vn/honda-nissan-thong-bao-sap-nhap-185241223154037096.htm