Thursday, May 29, 2025

Big Changes Ahead: Honda and Nissan Set to Merge Under New Holding Company

Nissan CEO Makoto Uchida and Honda CEO Toshihiro Mibe shaking hands at a press conference held in Tokyo on August 1, pledging cooperation. / AFP Yonhap
Nissan CEO Makoto Uchida and Honda CEO Toshihiro Mibe are shaking hands at a press conference held in Tokyo on August 1, pledging cooperation. / AFP Yonhap

Japanese automakers Honda and Nissan are accelerating their integration by planning to establish a holding company to oversee both entities.

According to sources, including NHK and Jiji Press, Honda and Nissan are set to sign a memorandum of understanding (MOU) soon and finalize the specifics, such as the holding company’s integration ratio. They are also considering the possibility of Mitsubishi Motors, the largest shareholder in Nissan, joining the integration, signaling a potential merger of the three companies.

Last year, Honda’s global vehicle sales reached 3.98 million units, while Nissan sold 3.37 million. A merger would create the world’s third-largest automotive conglomerate.

In a statement released this morning, Nissan confirmed, “Our company, along with Honda and Mitsubishi Motors, is examining various possibilities of future collaboration, leveraging our respective strengths.” Honda issued a similar press release.

Honda and Nissan began exploring collaboration in March. Since August, they have been discussing comprehensive partnerships, including shared automotive software and parts commonality.

Honda possesses proprietary technology for fuel-efficient hybrid vehicles, while Nissan has launched the world’s first mass-produced electric vehicle.

However, both companies have faced challenges in China and Southeast Asia, losing ground to Chinese competitors. From January to November this year, Honda’s sales in China plummeted 30.7% year-over-year, while Nissan saw a 10.5% decline.

Due to poor financial performance, Nissan reduced its global production capacity by 20% in November. As part of urgent restructuring measures, it announced plans to lay off about 9,000 employees, roughly 10% of its workforce.

Nikkei analyzed that Nissan seems to have determined that strengthening ties with Honda is crucial for its recovery.

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