Honda and Nissan have entered discussions regarding a potential merger, marking a historic shift for Japan’s automotive industry that underscores the threat posed by Chinese electric vehicle manufacturers to some of the world’s most renowned carmakers.
The consolidation would create the world’s third-largest automotive group by vehicle sales, following Toyota and Volkswagen. It would also provide the two companies with an opportunity to share resources in the face of fierce competition from Tesla and Chinese rivals such as BYD.
The merger of these two iconic Japanese brands – Honda, Japan’s second-largest automaker, and Nissan, the third – would represent the biggest shake-up in the global automotive industry since the $52 billion merger of Fiat Chrysler Automobiles and PSA in 2021 to form Stellantis.
The smaller Mitsubishi Motors, in which Nissan is the largest shareholder, is also considering joining the merger, according to the companies.
The CEOs of all three companies held a joint press conference in Tokyo.
“The rise of Chinese automakers and new players has significantly changed the automotive industry,” Honda CEO Toshihiro Mibe stated during the press conference. “We need to develop the capabilities to compete with them by 2030, or we will lose,” he added.
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Source: CNA
