Catenaa, Wednesday, December 18, 2024 – Japanese automotive giants Honda and Nissan have reportedly engaged in preliminary discussions about a potential merger, aimed at bolstering their competitiveness in the electric vehicle (EV) market, particularly against emerging Chinese manufacturers.
Both companies issued identical statements to the BBC, referencing their March agreement to explore strategic partnerships in EV development.
While neither confirmed nor denied the merger talks, they noted that discussions are ongoing, with no guarantee of an agreement.
Official confirmation of these discussions could come as early as next week, according to Japanese media.
The potential merger reflects growing pressures on traditional automakers to adapt to a rapidly evolving industry dominated by electric vehicle production. China, which accounted for 70% of global EV sales in November, has become a key battleground for automakers, with companies like BYD outpacing traditional players such as Honda and Nissan.
Nissan shares soared over 20% in Tokyo following the reports, while Mitsubishi, a Nissan affiliate, saw a 13% rise.
However, Honda’s shares dipped by 2%. Analysts remain skeptical about the merger’s long-term benefits, with some questioning whether combining resources will address the brands’ declining market share and lack of innovative EV offerings.
Complicating the potential deal are political concerns in Japan, possible job cuts, and Nissan’s existing alliance with French automaker Renault.
