According to TrendForce, Japanese automakers Honda and Nissan are in discussions for a potential merger. The two companies aim to integrate resources to enhance their competitiveness against Tesla and Chinese electric vehicle (EV) manufacturers. Sources indicate that Honda and Nissan are looking to operate under a single holding company, with a memorandum of understanding (MOU) for this new entity expected to be signed soon.
Rumors suggest that talks began in March this year, with the partnership confirmed in August, focusing on sharing vehicle components and software. Additionally, Honda and Nissan are considering bringing Mitsubishi Motors into the fold. Nissan, as a major shareholder in Mitsubishi Motors, has reportedly received interest from Mitsubishi regarding this integration. If the three automakers merge, their combined annual sales would exceed 8 million units, making them the world’s third-largest automotive group.
Reports also indicate that this move might be a response to a potential acquisition by Foxconn. Both Honda and Nissan are said to be working to prevent such an outcome. Foxconn, which entered the EV market in 2019, has been making waves, unveiling the LDK+ concept car earlier this year in collaboration with its subsidiary Sharp, followed by the Model D and Model U. Over the past few months, Foxconn has reportedly been seeking to acquire Nissan’s assets and operations to expand its presence in the automotive market.
Meanwhile, Chinese automakers like BYD and other emerging EV manufacturers have rapidly expanded, weakening Japanese automakers’ market share in China and Southeast Asia. Honda has already announced a 10% global production capacity reduction, with China now surpassing the U.S. as its largest production hub. Nissan, facing challenges not only in China but also in the U.S., has cut production capacity by 20% globally and reduced its workforce by nearly 10% worldwide.
