Honda and Nissan are exploring deeper collaboration, including a potential merger, to address growing competition from Tesla and Chinese EV makers. The move could create the world's third-largest automaker, reshaping Japan's automotive industry.
Honda and Nissan are in discussions to strengthen ties, potentially through a merger, two sources revealed on Wednesday. This move highlights how Japan's auto industry is responding to challenges from Tesla and Chinese competitors.
A merged Honda-Nissan entity would become the world's third-largest automaker, with a market value of $54 billion and annual production of 7.4 million vehicles, trailing only Toyota and Volkswagen.
The two companies established a strategic partnership in March to collaborate on electric vehicle (EV) development. However, Nissan's mounting financial troubles have accelerated the need for closer cooperation.
Last month, Nissan announced a $2.6 billion cost-saving plan, including 9,000 job cuts and a 20% reduction in production capacity, following an 85% drop in second-quarter profits due to weak sales in China and the US.
“This seems like an effort to rescue Nissan, but Honda is also facing challenges,” said Sanshiro Fukao of the Itochu Research Institute. Honda expects weaker cash flow next year and struggles in its EV segment.
Nissan shares surged over 22% on Wednesday, while Honda shares dipped 2.3%.
Mitsubishi shares rose 13%. The talks aim to enhance technological collaboration and could lead to a holding company or even a full merger, sources said. Cooperation with Mitsubishi Motors, in which Nissan owns a 24% stake, is also being explored.
Neither company has announced a deal, though they have acknowledged exploring collaboration opportunities.
“A Honda-Nissan merger could revitalise Japan's auto industry by providing competition to Toyota,” said Seiji Sugiura of Tokai Tokyo Intelligence Laboratory. However, integrating their differing corporate cultures and navigating US trade policies could pose challenges.
Ukrainian President Volodymyr Zelenskyy said on Tuesday that Türkiye, Gulf states or European nations could host potential talks with Russian Preside...
Space X will attempt to launch its super heavy booster rocket, Starship tonight after it was postponed on Monday night due to weather conditions at it...
U.S. President Donald Trump has said he wants to open denuclearisation talks with Russia and China, revisiting an issue he raised earlier as he also s...
Russian state assets frozen since the outbreak of the Ukraine conflict should remain in the Euroclear securities depository in Belgium for the time be...
A quarter of the world’s population, 2.1 billion people, still lack access to safely managed drinking water, according to a new WHO and UNICEF repor...
Nissan Motor Co. (7201.T) and Honda Motor Co. (7267.T) have formally ended discussions on a potential merger, a deal that would have created a $60 billion automotive giant. Despite this decision, both automakers confirmed they will continue to collaborate on electric vehicle (EV) technology.
Honda and Nissan plan to merge, forming the world’s third-largest automaker, as Japan’s car giants accelerate efforts to lead the shift to electric and autonomous vehicles.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
The S&P 500 closed lower on Monday (25 August) as investors turned their attention to Artificial Intelligence (AI) chipmaker Nvidia’s upcoming quarterly results, following Friday’s rally that saw the Dow Jones Industrial Average close at a record high.
The global market for chemical enhanced oil recovery (EOR) is set to expand significantly over the coming decade. According to Allied Market Research’s 'Global Oil Recovery Market Report,' the market, valued at $900 million in 2021, is expected to grow at an average annual rate of 4.6%, reaching $1.
British American Tobacco (BAT) is preparing to sell its first disposable vape in the U.S. reversing years of opposition to unauthorised devices amidst a booming $8 billion market for synthetic nicotine products.
Large investors, wary of September’s traditional seasonal downturns, moved to lock in profits on Tuesday, according to traders and research firms – a sign that the sell-off in technology shares may reflect a broader retreat from risk.
Pop Mart has posted stunning interim results for the first half of 2025, riding on the explosive popularity of its breakout character Labubu.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment