Honda And Nissan Officially Announce Merger

Honda Motor Company and Nissan Motor Corp. together made an announcement stating the two companies will merge into a joint holding company by 2026. The combination of Honda and Nissan, along with Mitsubishi, will make the joint company the third-largest automaker in the world by volume, only being outrun by Toyota and Volkswagen Group.

According to a statement released by the brands, Nissan and Honda expect to list shares of its new joint holding company by August 2026 on the Tokyo Stock Exchange. The automakers are expected to become wholly owned subsidiaries of the joint holding company and therefore, each will be delisted from the Tokyo exchange once the new joint holding company is in place.

“Today marks a pivotal moment,” Nissan CEO Makoto Uchida said in a statement announcing the negotiations. “Together, we can create a unique way for (customers) to enjoy cars that neither company could achieve alone.”

Honda will reportedly nominate a majority of both the internal and external directors for the joint holding company. According to the release, the nominated directors will then select the president and representative director, or president and representative executive officer of the joint holding company.

“The MOU between Nissan and Honda announced today is aimed to serve as an option to maintain global competitiveness and for the two companies to continue to deliver more attractive products and services to customers worldwide,” the announcement says.

The companies also mentioned that they “aim to further contribute to the development of Japan’s industrial base” by integrating Nissan and Honda’s four-wheel-vehicle business, plus Honda’s motorcycle and power products business.

The two automakers say “potential synergies” include:

• Scale advantages from vehicle platform sharing, including internal-combustion, hybrid, plug-in hybrid and EV models.
• Integrated research & development functions.
• “Optimized” manufacturing plants and energy service facilities, with “improved collaboration through shared use of production lines.”
• Integrated supply chain purchasing functions.
• A better foundation for attracting talent from high technology for intelligence and electrification.

Since 2017, Renault has reportedly been selling off interest in Nissan acquired from their late-1990s alliance. Shortly after the announcement from Honda and Nissan, the Renault Group released a statement:

“Renault Group acknowledges the announcements made today by Nissan and Honda, which are still at an early stage. As the main shareholder of Nissan, Renault Group will consider all options based on the best interest of the Group and its stakeholders. Renault Group continues to execute its strategy and to roll-out projects that create value for the Group, including projects already launched within the Alliance.”

Do you think the merger between Honda and Nissan will benefit both companies? How will it impact the automotive manufacturing industry as a whole? Sound off in the comments below.

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