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Honda and Nissan have officially confirmed rumors that they're pursuing a merger, the companies wrote in a joint press release. Each would continue to operate under its own brand, but with a new joint holding company as parent. If Nissan-controlled Mitsubishi also came on board, the combined group would become the world's third largest automaker by sales volume and have a net worth of up to $50 billion.
"Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future," said Nissan CEO Makoto Uchida.
Integration talks are still preliminary, but the companies are pressing forward. "We are still at the stage of starting our review and we have not decided on a business integration yet," said Honda director Toshihiro Mibe. However, he added that the companies aim "to find a direction for the possibility of business integration by the end of January 2025." After that, they hope to have a "definitive agreement" concerning business integration by June 2025. Approval must come from each company's shareholders and is subject to Nissan executing a turnaround.
Nissan and Honda previously announced plans to work together on EV components and software development, but the joint company would be far more integrated. According to the press release, the plan includes: standardizing vehicle platforms; unifying research and development teams; and optimizing manufacturing systems and facilities. All of that is usually designed to cut costs, so it could spell significant layoffs in Japan and elsewhere.
Nissan's Titan pickup lineup
Nissan
Though the two companies sell comparable vehicles like Nissan's Rogue and the Honda CR-V, some synergy seems possible. Nissan sells large pickup trucks and SUVs in the US that Honda doesn't offer and also has more experience in EVs and plug-in electric vehicles. On the other side, Honda has relatively stable financials while Nissan has been struggling in the market, particularly at home.
Of course, Nissan is already in the Renault-Nissan-Misubishi Alliance. Nissan and Renault hold a 15 percent voting stake in the other, and all three sold a combined 10.6 million vehicles worldwide in 2017, more than any other light vehicle manufacturer at the time. The Alliance is also one of the largest EV makers in the world, with over 1 million units sold since 2009. If Nissan and Honda merged, it's not clear what would become of the Alliance.
This article originally appeared on Engadget at https://www.engadget.com/transporta...nnounce-plans-to-merge-143834962.html?src=rss
"Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future," said Nissan CEO Makoto Uchida.
Integration talks are still preliminary, but the companies are pressing forward. "We are still at the stage of starting our review and we have not decided on a business integration yet," said Honda director Toshihiro Mibe. However, he added that the companies aim "to find a direction for the possibility of business integration by the end of January 2025." After that, they hope to have a "definitive agreement" concerning business integration by June 2025. Approval must come from each company's shareholders and is subject to Nissan executing a turnaround.
Nissan and Honda previously announced plans to work together on EV components and software development, but the joint company would be far more integrated. According to the press release, the plan includes: standardizing vehicle platforms; unifying research and development teams; and optimizing manufacturing systems and facilities. All of that is usually designed to cut costs, so it could spell significant layoffs in Japan and elsewhere.
Nissan's Titan pickup lineup
Nissan
Though the two companies sell comparable vehicles like Nissan's Rogue and the Honda CR-V, some synergy seems possible. Nissan sells large pickup trucks and SUVs in the US that Honda doesn't offer and also has more experience in EVs and plug-in electric vehicles. On the other side, Honda has relatively stable financials while Nissan has been struggling in the market, particularly at home.
Of course, Nissan is already in the Renault-Nissan-Misubishi Alliance. Nissan and Renault hold a 15 percent voting stake in the other, and all three sold a combined 10.6 million vehicles worldwide in 2017, more than any other light vehicle manufacturer at the time. The Alliance is also one of the largest EV makers in the world, with over 1 million units sold since 2009. If Nissan and Honda merged, it's not clear what would become of the Alliance.
This article originally appeared on Engadget at https://www.engadget.com/transporta...nnounce-plans-to-merge-143834962.html?src=rss
