December 23, 2024 – According to a report by NHK today, Honda and Nissan are hoping to finalize a merger agreement by June 2025, with negotiations kicking off on Monday local time.
Insiders have revealed that the two automotive giants are planning to establish a holding company that will oversee the operations of both companies. The new entity will have its president selected from a pool of directors nominated by Honda, which will also nominate the majority of both internal and external directors for the holding company.
Honda and Nissan are set to hold separate board meetings today to reach a basic agreement on entering formal negotiations for the business merger. The companies are targeting June of next year to reach a final agreement. If the integration is successful, it will give birth to a new automotive group that ranks third in global sales.
During the merger discussions, Honda and Nissan will explore the possibility of producing vehicles at each other’s factories. Specifically, they will consider a plan where Honda supplies hybrid vehicles (note: referring to gas-electric hybrids, which are eligible for blue license plates in China) to Nissan, which currently lacks popular models in the US market. This move aims to fully leverage the strengths of the mega-automaker alliance to enhance profitability.
