Honda and Nissan have announced plans to merge by 2026, aiming to create the world's third-largest automaker by sales volume, trailing only Toyota and Volkswagen. This merger is driven by the need to compete with rising Chinese electric vehicle manufacturers and to address the challenges of electrification and autonomous driving.
The combined entity is expected to achieve sales of 30 trillion yen ($191 billion) and operating profits exceeding 3 trillion yen. The merger will also involve integrating their manufacturing plants and energy service facilities to improve efficiency and reduce costs
Mitsubishi Motors, in which Nissan holds a majority stake, is also considering joining the merger, which could further boost the combined group's global sales.
This merger represents a major shift in the global auto industry and highlights the importance of collaboration to stay competitive in the rapidly evolving market.
Toshihiro Mibe, Honda CEO, "We have to build up capabilities to fight with them by 2030, otherwise we’ll be beaten."
Makoto Uchida, Nissan CEO, "Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.
Sam Abuelsamid, Auto Industry Analyst, "Some brands that have been around for a long time may well not be part of the landscape five or ten years from now just because they don’t have enough scale to compete against either the big Western players or the Chinese companies."
The merger is seen as a strategic move to address the challenges posed by Chinese electric vehicle manufacturers and to pool resources for better competitiveness in the evolving market.
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