Honda and Nissan are reportedly in talks for a merger aimed at enhancing their competitiveness in the electric vehicle market.
According to a report by the Japanese newspaper “Nikkei,” the two companies are planning to sign a memorandum of understanding aimed at exploring the establishment of a new holding company.
This move is seen as a strategic effort to make them more competitive against Chinese EV firms and Tesla.
In March, Honda and Nissan agreed to collaborate on their electric vehicle initiatives, deepening their partnership in August with a focus on shared technology, including batteries and electric axles.
Nikkei’s report further indicates that Nissan, which holds a significant 24% stake in Mitsubishi, is keen to bring Mitsubishi into the fold of this collaboration under the proposed holding company. If successful, this could position the combined entity as one of the major automotive groups globally.
It is too early to say what impact a merger would have on distribution in the UK with inevitable overlap between the Honda and Nissan dealer networks
