Honda and Nissan have confirmed plans to merge into a new company, with Mitsubishi considering an offer to join them.
Japan’s second- and third-largest car makers behind Toyota are targeting mid 2025 to finalise a “business integration” that would see Honda and Nissan sit under a new joint parent company as subsidiaries.
Honda is set to be the lead company in the merger, selecting the key executives for the new holding company which has yet to be given a name.
Honda and Nissan would share platforms and drivetrains as a key part of the strategic partnership, with other cruical areas of potential synergy including research and development, production, electrification, sales financing, and software.
The two Japanese brands had already begun talks earlier in 2024 to join forces on electric-car development as they sought to be more competitive against the likes of Tesla and multiple Chinese brands.
Honda, however, has stipulated in its official statement that the partnership is “based on the premise that Nissan’s turnaround actions are steadily executed”.
Nissan initiated a turnaround plan in November, which included major cuts in workforce and global production capacity, as it faced an uncertain future with declining sales and shrinking profits.
Major Nissan shareholder Renault, which has been gradually selling off its shares in the Japanese car maker, hasn’t confirmed its plans in the event of the merger being confirmed next year. The Japanese and French brands have several joint-venture electric vehicles rolling out in the coming years.
A Honda-Nissan tie-up would be the biggest global alliance formed since Fiat Chrysler and PSA came together under the Stellantis umbrella in 2021, and would be the world’s third-largest automotive alliance – behind Toyota and Volkswagen Group – based on global vehicle sales.
Mitsubishi Motors has until the end of January 2025 to decide whether to make it a triumvirate of Japanese brands.
