Nissan and Honda are reportedly in talks for a possible merger
PHOTOS BY JULIAN PANLILIO
Nissan has been the talk of the global automotive industry in recent weeks no thanks to financial struggles that the company is currently experiencing.
The latest talk is that it is in talks with fellow Japanese automaker Honda for a possible merger. This was first reported by Japanese news publication Nikkei in the early hours of December 18, 2024.
Last month, Nissan announced a 20% cut in production capacity and a nearly 10% cut in its global workforce as it faced declining sales in China and the United States, and a 90% reduction in operating income between March and September of 2018.
According to the report, a merger would allow the two companies to join their resources to better compete against Tesla and Chinese electric vehicle makers in a rapidly changing automobile industry. It could also become key to Nissan’s turnaround.
A merger between the two would also form the third-largest automotive group by vehicle sales after Toyota and Volkswagen with a combined USD 54-billion value and 7.4-million annual vehicle output. That could also include Mitsubishi Motors of which Nissan owns a 34% share.
These merger talks are not the first time Nissan and Honda have formed a relationship. Previously in March this year, the two companies entered a strategic partnership for the development of electric vehicles.
Elsewhere, other automotive brands are also building new relationships such as the Hyundai Motor Group and General Motors for EVs, and BMW and Toyota for fuel cell vehicles.
