Honda and Nissan are reportedly beginning to negotiate a merger, which would help the companies compete against powerhouses like Toyota.
The merger would bring both brands under a holding company, according to a report by Nikkei today. This would also eventually include Mitsubishi, of which Nissan owns a 24% majority stake.
“The reported content was not released by our company,” according to Honda. “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths. We will inform our stakeholders of any updates at an appropriate time.”
A merged Honda, Nissan, and Mitsubishi could sell over eight million vehicles annually, according to Nikkei.
Honda and Nissan are the second and third-largest car manufacturers in Japan, after Toyota. Their combined global sales in 2023 reached 7.4 million.
The companies said in March that they would partner on electric vehicle technology, sharing resources for components and software.
Honda said today that it aims to double its hybrid vehicle sales worldwide, reaching 1.3 million annually by 2030.
"Perhaps Toyota's Prius may come to your mind when you think of hybrids, but I believe we can change the game,” said Honda’s chief officer of automobile operations Katsuto Hayashi.
Honda’s (TYO: 7267) share price stood at JP¥1283.50 as of 9:15 am AEDT, down from its previous close at ¥1287.50. Its market cap is ¥6.78 trillion.
Nissan’s (TYO: 7201) share price was JP¥337.60 as of 9:15 am AEDT, down from its previous close at ¥351.40. Its market cap is ¥1.25 trillion.