Nissan, Honda confirm merger talks but say no decision has been made
Share:
Japanese car manufacturers Nissan Motor Corp. and Honda Motor Co. acknowledged that they are exploring possibilities for closer collaboration. However, they dismissed reports suggesting that a merger has been agreed upon. In Tokyo, Nissan's share price surged by nearly 24% following reports from unnamed sources indicating a potential merger with Honda.
This would result in the formation of the world's third-largest automaking group. Honda’s share price fell as much as 3%. Nissan alliance member Mitsubishi Motors Corp. is also part of the talks. Initially, trading in Nissan's shares was halted but later resumed after the companies issued a joint statement.
The statement clarified that they are "considering various possibilities for future collaboration, but no decisions have been made." The rise of Chinese automakers is causing a stir within the industry, particularly as manufacturers face challenges in transitioning from fossil fuel-driven vehicles to electric ones.
Chinese companies like BYD, Great Wall, and Nio are offering relatively affordable electric vehicles (EVs), which are impacting the market shares of US and Japanese car companies both in China and globally. Japanese automakers have fallen behind their major competitors in the EV market and are now focusing on reducing costs and making up for lost time.
In August, Nissan, Honda and Mitsubishi revealed plans to share components for electric vehicles such as batteries, and jointly research autonomous driving software to better adapt to the auto industry's electrification shift. A preliminary agreement between Honda, Japan's second-largest automaker, and Nissan, the third largest, was unveiled in March.
