Japanese car manufacturers Honda and Nissan have revealed plans to merge, positioning themselves as the world's third-largest automaker by sales. The move comes as the automotive industry undergoes significant transformation amidst the shift away from fossil fuels.
The two companies signed a memorandum of understanding on Monday, with Nissan's smaller alliance partner, Mitsubishi Motors, also agreeing to participate in discussions about integrating their operations.
Japanese automakers have been slower than their global competitors in adopting electric vehicle (EV) technologies. The merger aims to streamline costs and accelerate their transition to electrification.
Speculation about a potential merger emerged earlier this month, with reports suggesting the talks were partly influenced by Taiwanese electronics giant Foxconn’s interest in a collaboration with Nissan. Nissan currently has an alliance with France's Renault SA and Mitsubishi Motors.
In August, Nissan, Honda, and Mitsubishi announced plans to share EV components such as batteries and collaborate on autonomous driving software development. These initiatives followed a preliminary agreement between Nissan and Honda in March.
Nissan has faced challenges recently, with Fitch Ratings downgrading its credit outlook to "negative," citing reduced profitability due to price cuts in the North American market. However, the company retains a robust financial foundation, with $9.4 billion in cash reserves.
Despite financial difficulties, Nissan's share price has shown resilience, with Monday's Tokyo trading seeing a 1.6% increase. Shares surged by over 20% last week following news of the potential merger.
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South Korea has detected North Korea’s plans to expand military support to Russia, including deploying troops and supplying advanced weapons like suicide drones, raising alarms over global security dynamics.
Switzerland aligns with EU sanctions on Russia and Belarus, freezing assets, banning vessels, and targeting entities linked to military trade and stolen Ukrainian grain.
A cargo ship, ANMAH, capsized at an Istanbul port early on Monday, after an imbalance in its cargo loading, according to the local governor's office.
France observes a national day of mourning for Mayotte after Cyclone Chido, the worst storm in 90 years, left devastation and a disputed death toll, with flags at half-mast across the nation.
U.S. judge ruled on Friday in favour of Meta Platforms' WhatsApp in a lawsuit accusing Israel's NSO Group of exploiting a bug in the messaging app to install spy software allowing unauthorized surveillance.
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