Honda and Nissan are experimenting with fusion technology.
Honda and Nissan are experimenting with fusion technology.
Honda and Nissan, as per reliable sources, are contemplating a tighter alliance and potentially merging. A merger is one of the options being discussed, as stated by an inside source, in an attempt to match Toyota's lead in the cut-throat automotive market. Another source reveals that they're also considering a partnership with Mitsubishi Motors, where Nissan holds a significant 24% stake.
Merging Honda and Nissan would result in a company valued at approximately $54 billion, with an annual production capacity of 7.4 million vehicles. Positioned third globally by vehicle sales, this merged entity would trail only Toyota and Volkswagen. This potential move would also be the most significant in the industry since Fiat Chrysler and PSA merged for $52 billion in 2021, resulting in Stellantis.
The Japanese publication "Nikkei" broke the news, attributing the information to insiders. According to the report, the companies are looking to operate under a single holding company, a development expected to be announced shortly. Renault, Nissan's biggest shareholder, denied having any knowledge about this merger plan. Both Nissan and Mitsubishi refrained from providing additional details, referring instead to their earlier statement on examining potential future collaborative ventures.
The Japanese companies Honda and Nissan, as mentioned, are considering a merger to challenge Toyota's dominance in the automotive market. Renowned Japanese publication "Nikkei" reported this, highlighting insiders as the sources of the information.