Japan

Nissan, Honda Sign Deal to Explore Merger

Published DEC 23 2024

Story

Above: (L to R) Makoto Uchida, president of Nissan Motor Corporation, Toshihiro Mibe, president of Honda, and Takao Kato, president of Mitsubishi Motors, attend a joint press conference in Tokyo on Dec. 23, 2024. Image credit: PHILIP FONG/Contributor/AFP via Getty Images

The Facts

Japanese carmakers Honda and Nissan announced Monday the signing of a memorandum of understanding (MoU) to explore a merger to form a joint holding company — potentially the world's third-largest automaker by sales.
TipRanks Financial
Telegraph India
The companies, alongside Nissan group firm Mitsubishi Motors, said they aim to finalize a deal by June 2025 and complete the process in August 2026. A Japanese government official reportedly said the two had informed authorities of their plan.
www.ft.com
Kyodo News+
Most of the new holding firm's internal and outside directors, including its president, are expected to be Honda-nominated. Nissan, whose largest shareholder Renault backs a merger, would receive Honda's hybrid technology.
China Daily
Finimize
In March, Nissan inked a deal with Mitsubishi — in which it has a 26.7% stake — to develop electric vehicles. Nissan has reportedly driven down a sales trough in the US and China, forcing it to lay off thousands and lower its profit outlook by 70%.
Ecns
BNN Bloomberg
Nissan's Chief Executive Officer Makoto Uchida pointed to "new players" as a reason for the merger talks, possibly referring to the US-based Tesla and China's BYD, which have, in recent years, surpassed Japanese car majors.
www.ft.com
Kyodo News+
Following the news, Japanese markets closed higher, with Nikkei rising by 1.19%, Topix by 0.92%, Honda by 3.82%, and Nissan by 1.58%.
Reuters
NBC4 Washington

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Honda and Nissan's potential merger signals the end of an era of independent Japanese automakers. The union would forge a $52B industrial titan — a direct response to BYD's meteoric rise and Foxconn's threatening interest in Nissan. This marriage of necessity could spark an unprecedented realignment in global automotive power dynamics.

guardian

Asia Times

Narrative B

Struggling Nissan's possible union with Honda is one destined for disappointment. The alliance faces daunting obstacles — overlapping product lines, clashing corporate cultures, and Honda's potential inheritance of Nissan's troubled US business. The merger's prospects are dim, given the widespread redundancies between the companies.