Likely yet another case of bad reporting / attention-seeking headlines. At best it is probably just a collaboration project for an EV platorm (similar to the partnership for the Toyota 86 / Subaru BRZ twins), rather than an actual full company merger.
Honda And Nissan Hold Merger Talks ---------------------------------- Japanese automaker Nissan has been having a pretty rough time in 2024, with sales floundering and its aging lineup looking increasingly outdated compared with the competition. Honda also hasn't had a phenomenal time of it, with the automaker slow on the uptake of EVs and backtracking on a deal to collaborate with General Motors on next-generation models.
These two automotive icons are now reportedly considering a merger that would create a new automotive giant to turn around their fortunes, reports Bloomberg. Talks, which could even extend to Mitsubishi as well, have kicked off between the Japanese brands with the automakers hoping that by pooling their resources they'll be better prepared to tackle the competition from rivals Toyota and the booming Chinese auto industry:
Discussions are at an early stage and may not lead to an agreement, the people said.
"Both players stand to gain from this merger," Vivek Vaidya, senior vice president of mobility at Frost & Sullivan, said. "The combined entity will be a complete automaker."
A deal would effectively consolidate the Japanese auto industry into two main camps: One controlled by Honda, Nissan and Mitsubishi and another consisting of Toyota group companies. It would also provide them with more resources to compete with larger peers globally after downsizing long-held partnerships with other carmakers. Nissan has loosened ties with France's Renault SA and Honda has backed away from General Motors Co.
If Honda, Nissan and Mitsubishi were to merge, it would create an automotive giant with a market value of $57 billion, reports Bloomberg. In comparison, Toyota is valued at $276bn and Tesla is valued at more than a trillion dollars.
The makeup of any potential merger remains to be seen, with Honda and Nissan set to decide whether it could be a full merger similar to the joining of Fiat-Chrysler and PSA to create Stellantis, or if it could be something softer, as Bloomberg added:
Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, Executive Vice President Shinji Aoyama said on Wednesday following reports overnight of talks between the carmakers. Aoyama declined to elaborate on when a potential decision will be made.
The companies could make an announcement on Dec. 23, TBS reported. Stock in Honda fell as much as 3.4%.
Would you buy a Nissan Honda car in the future, or would you be more inclined to shop at your local Honda Nissan? Whichever way around the names are above the door, this is sure to be a big shakeup in Japan's auto industry that could just save these two companies.