Honda and Nissan consider merger to help compete in EV market
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Honda and Nissan are weighing a merger amid an intense battle to capture the booming electric vehicle market, potentially building the world's largest carmaker by sales. The Japanese car giants revealed they had signed a memorandum of understanding (MOU) on a potential business integration, along with smaller Nissan alliance member Mitsubishi Motors.
They said a tie-up would potentially help them 'maintain global competitiveness' and deliver 'more attractive' products and services as the vehicle industry experiences a massive upheaval. Honda and Nissan agreed to consider collaborating on developing EV technology in March, before deciding at the beginning of August to conduct joint research on autonomous driving and share components for EVs like batteries.
A merger between the longtime competitors - who are also Japan's second and third-largest carmakers - and Mitsubishi would create a business worth over $50billion in market capitalisation. Standing together: Nissan and Honda revealed they had signed an MOU on a potential business integration, along with smaller Nissan alliance member Mitsubishi Motors.
The firms say the deal would offer the standardisation of vehicle platforms, which would lower costs and create stronger products, the optimisation of factories, and the integration of research and development functions. Makoto Uchida, chief executive of Nissan, said: 'I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands.
