Automotive expert Mike Caudill joins Kabuto: Coast to Coast to discuss the potential Honda-Nissan merger and how it could impact the brand. Masu.
Japanese automakers Nissan and Honda have agreed to consider a merger and form a joint holding company to create the world's third-largest automaker.
The companies said in a statement Monday that they aim for combined sales of $191 billion and operating income of more than $19 billion through the potential merger.
The two companies hope to conclude negotiations around June 2025 and establish a holding company by August 2026, when both companies' shares will be delisted.
The merger talks come as both automakers struggle to compete with the world's largest electric vehicle makers, including Tesla and Chinese automaker BYD.
What the Honda-Nissan merger means for the auto industry and consumers
Makoto Uchida, director, representative executive officer, president and CEO of Nissan Motor Co., Ltd. and Toshihiro Mibe, director, representative executive officer and president of Honda Motor Co., Ltd. (right), holding a joint press conference regarding the merger. (Reuters/Reuters Photo)
The merger will create the world's third-largest automobile group in terms of car sales after Toyota and Volkswagen.
Honda, Japan's second-largest automaker after Toyota, has a market capitalization of over $40 billion, while Nissan, the third largest, has a market capitalization of approximately $10 billion.
“Today is a pivotal moment as we begin discussions on a business combination that has the potential to shape the future of our company,” Makoto Uchida, Nissan director, president, CEO and representative executive officer, said in a statement. “If realized, we believe that by combining the strengths of both companies, we will be able to deliver unparalleled value to customers around the world who highly value our respective brands. Together, we can create ways to enjoy it.”
If Honda and Nissan merge, they will create the world's third-largest automobile group in terms of car sales. (Reuters/Reuters Photo)
Toshihiro Mibe, Honda director and representative executive officer, said, “In order to overcome the harsh environmental changes facing the automobile industry, we must combine the knowledge, human resources, technology, and other resources that Honda and Nissan have cultivated over many years to create new mobility value.'' It is essential to create.” It's suitable.
“Honda and Nissan are two companies with unique strengths,” Mibe added. “We are still in the process of considering the matter, and have not decided on business integration, but we will work together as one to find a direction for the possibility of business integration by the end of January 2025.”Both teams We are the only leading company that creates new mobility value through chemical reactions that can only be created through the fusion of ”
Honda and Nissan reportedly planning to start merger talks in consideration of EV competition: Report
Honda and Nissan also agreed to expand their cooperation with Mitsubishi Motors. (Reuters/Reuters Photo)
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A majority of the holding company's board of directors will be appointed by Honda.
The two companies announced in March that they were considering a partnership in the fields of electrification and vehicle intelligence, and in August they announced an agreement to conduct joint research on fundamental technology in the field of next-generation software platforms. We are looking for ways to strengthen it. Vehicle defined.
The two companies also agreed to expand their cooperative relationship with Mitsubishi Motors.
Reuters contributed to this report.
