Honda, Nissan announce merger discussions

Honda and Nissan have officially initiated negotiations for a merger, aiming to reach an agreement by June next year. Mitsubishi Motors, which is allied with Nissan, is reportedly set to join the talks next year.

The presidents of the three companies are scheduled to report to the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism this morning (Dec. 23), followed by a press conference in the afternoon. According to Japanese media, Honda and Nissan plan to sign a memorandum of understanding.

Chief Cabinet Secretary Yoshimasa Hayashi expressed that the Japanese government hopes domestic companies will take proactive measures to adapt to market changes and enhance their competitiveness in the global arena.

The proposed merger would create a holding company, forming the world's third-largest automotive alliance. This strategic move is intended to better position the companies to address the rapidly evolving electric vehicle market and to compete against rivals such as Chinese electric vehicle manufacturers and Tesla.

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