Honda and Nissan have confirmed discussions to merge operations, with Mitsubishi potentially joining the partnership. This collaboration, outlined in a memorandum of understanding signed today, would create the world’s third-largest automaker based on sales volume if successful.
The talks come as Nissan struggles financially. The automaker has recently implemented cost-saving measures, including merging some Infiniti dealerships with nearby Nissan stores, reducing its workforce, and restructuring its corporate layout. Nissan CEO Makoto Uchida, who also reduced his salary by 50 percent, described the merger as an opportunity to deliver greater value to a broader customer base.
“We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base,” Uchida said in a press release.
Honda and Nissan’s discussions build on an earlier agreement signed this year to jointly develop electric vehicles and automotive software. Over the next six months, the automakers will explore merging under a single holding company, with the goal of completing the integration by August 2026.
Honda CEO Toshihiro Mibe emphasized the importance of this collaboration in addressing industry challenges. “At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors’ participation in the business integration discussions of Nissan and Honda will lead to further social change, and that we will be able to become a leading company in creating new value in mobility through business integration,” Mibe said.
This partnership signals a significant shift in the automotive industry as these Japanese giants aim to combine resources to innovate and adapt to evolving market demands.
