Nissan and Honda enter negotiations to flesh out details of a merger by mid 2026; Mitsubishi to confirm involvement by end of January
Japanese car giants Nissan and Honda have signed a memorandum of understanding (MOU), the first step in a planned merger as each tries to combat faltering sales. The two firms plan to share resources – including standardised vehicle platforms – as well as development costs and optimising manufacturing via use of shared production lines.
Other proposed areas of collaboration include shared supply chain infrastructure and parts, along with integration of back-office operations, financial services and human resources. Honda and Nissan’s car businesses are also set to be merged with Honda’s motorcycle and ‘power products’ arms.
Once full details are fleshed out the two firms will establish a joint holding company to act as parent company. This holding company is set to be listed on the Tokyo Stock Exchange in August 2026, with both individual manufacturer’s shares then subsequently delisted.
Meanwhile, at time of writing Mitsubishi is yet to make a call on entering talks – it is currently 34% owned by Nissan and will decide by the end of January.
It is hoped that this merger will improve fortunes at what is a difficult time for many mainstream manufacturers in the face of falling demand and increased competition from Chinese manufacturers.
The news comes just days after Volkswagen confirmed it will be cutting more than 35,000 jobs by 2030 in a bid to reduce costs.
