Honda, Nissan target August 2026 for merger, creating world’s №3 automaker

Honda Motor Co. and Nissan Motor Co. have signed a memorandum of understanding to initiate discussions on a merger that would establish a new holding company, Kazinform News Agency correspondent reports, citing Kyodo News.

Honda and Nissan, ranked as Japan’s second- and third-largest carmakers by production, are targeting June to finalize their merger discussions. The companies plan to establish a joint holding company by August 2026, with Honda initially leading the management. The merger will make them the world's third-largest auto group after Toyota.

The two automakers aim to share components to lower production costs and divide the significant expenses associated with development. Mitsubishi Motors Corp., a partner of Nissan, plans to announce by January 2025 whether it will participate in the potential merger.

The proposed merger seeks to enhance competitiveness against industry leaders like Toyota and Volkswagen, especially in the rapidly expanding electric vehicle markets of China and the USA. The combined sales are expected to reach approximately 8 million vehicles, including those of Mitsubishi Motors.

Earlier, it was reported that Honda Motor Co. and Nissan Motor Co. were in talks about a potential merger. In a joint statement, the companies noted that they are "considering various possibilities for future collaboration, but no decisions have been made."