On December 23, Honda Motor and Nissan Motor signed a memorandum of understanding and began formal merger talks.
Honda is Japan’s second-largest automaker, while Nissan is third. If the talks go well and the automakers merge, the new group would become the world’s third-largest automaker after Toyota and Volkswagen.
The negotiations are scheduled to be completed in June 2025. Both brands will be retained. The new holding will become the parent company of Honda and Nissan. Its shares will be traded on the Tokyo Stock Exchange. The listing is scheduled for August 2026.
The memo said the company would aim for combined revenue of 30 trillion yen ($191 billion) and operating profit of more than 3 trillion yen ($19.1 billion) after the merger.
Mitsubishi Motors may also join the future merged company, as Nissan is its main shareholder. This Japanese automaker signed another memorandum and plans to make a decision on participation in the deal by the end of January 2025. Together with Mitsubishi, the global sales of the new group will exceed 8 million cars.
At a press conference, Honda CEO Toshihiro Mibe attributed the merger decision to the rise of Chinese automakers and the emergence of new companies, which he said had “changed the auto industry.” “By 2030, we need to build up the capacity to fight them, or we will be crushed,” Mibe said.
