Honda and Nissan Enter Merger Talks to Create World’s Third-Largest Automaker
Honda and Nissan have officially begun talks to merge, aiming to become the third-largest automaker globally by sales. This merger comes in response to fierce competition in the electric vehicle market from Tesla and BYD.
Key Objectives of the Merger
The merger will create a holding company listed on the Tokyo Stock Exchange, driving synergies, economies of scale, and technological advancements in EV and intelligent driving. The new group is expected to generate $191.4 billion in revenue and an operating profit of $3 trillion yen.
Challenges and Opportunities for Nissan
As Nissan faces financial challenges and restructures, the merger is seen as a path to long-term competitiveness. Discussions are set to conclude by June 2025, with full integration expected by 2030. Mitsubishi may also join the new group by January 2025.
Conclusion: Strengthening Global EV Competitiveness
The merger between Honda and Nissan aims to secure their position in the electric vehicle sector and compete with top players like Tesla and BYD.
