Honda And Nissan Confirm Merger Talks That Could Form World’s 3rd Largest Automaker By 2026

Japanese brands Honda and Nissan sign MOU to start discussions towards the establishment of a joint holding company.

If realized, they aim to become a world-class mobility company with sales revenue of $190B and operating profit of $19B.

Merger will see the integration of their respective management resources such as knowledge and technologies.

Nissan and Honda have officially announced the signing of a memorandum of understanding (MOU) to start discussions and considerations towards the establishment of a joint holding company, which may lead to the creation of World’s 3rd largest automaker by 2026.

In a joint statement, both companies said that the MOU is aimed to serve as an option to maintain global competitiveness and for the two companies to continue to deliver more attractive products and services to customers worldwide.

If the merger becomes successful, both companies aim to integrate their respective management resources such as knowledge and technologies, thus, leading to the development of Japan’s industrial base as a “leading global mobility company”.

Reacting to the start of discussions on business integration, Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida said:

“If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”

Honda Director and Representative Executive Officer Toshihiro Mibe said : “Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing.”

If the business integration can be realized, Nissan and Honda aim to become a world-class mobility company with sales revenue exceeding 30 trillion yen ($190 billion) and operating profit of more than 3 trillion yen ($19 billion).

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