Honda and Nissan are gearing up to reveal the details of their merger plan in mid-February, according to a report by Kyodo News.
The two Japanese automakers—ranked second and third in the country by sales—originally planned to share their merger strategy by the end of January. Their goal is to unite under a holding company by 2026 while keeping their brands separate under the same corporate umbrella.
At a press conference on December 23, Honda CEO Toshihiro Mibe and Nissan CEO Makoto Uchida were joined by Mitsubishi Motors CEO Takao Katō, who expressed interest in joining the talks. However, Mitsubishi later backed out. If all three had merged, they would have formed the world’s third-largest car manufacturer, behind only Toyota and Volkswagen. Even without Mitsubishi, the Honda-Nissan merger is expected to place them among the top five global automakers.
Honda and Nissan had already planned to collaborate on electric vehicle (EV) tech, focusing on software, batteries, motors, and power electronics. But those plans hit a roadblock as Nissan struggled financially.
In October, reports emerged that Nissan was prioritising efforts to fix its declining financial health. The company’s earnings report on November 7 showed a staggering 94% drop in net profit year-over-year for April–September 2024, falling to ¥19.2 billion. Weak sales in Japan, North America, and China contributed to the decline.
To turn things around, Nissan CEO Uchida announced a major restructuring plan, including 9,000 job cuts—about 7% of its global workforce—and a 20% reduction in production capacity.
As Nissan’s financial troubles deepened, Taiwanese electronics giant Foxconn reportedly approached Japan’s Ministry of Economy, Trade, and Industry, as well as Nissan’s primary lender, Mizuho Bank, about a potential takeover. This appears to have pushed Honda and Nissan to speed up merger talks to avoid an external buyout.
