Here’s how Honda, Nissan, and Mitsubishi will work together

A few days ago, word of a possible merger between Nissan and Honda went around the internet. This comes after it was also widely reported that Nissan would only have about a year to make a profit turnaround in order to survive.

Today, the two companies, along with Mitsubishi Motors, held a joint press conference to announce the signing of a memorandum of understanding (MOU) for a merger.

A new holding company will be formed by August 2026. Under this will be Nissan Motor Corporation and its Nissan and Infiniti brands, and Honda Motor Co, Ltd. with the Honda, Acura, and Honda Motorcycles brands. 

Meanwhile, Mitsubishi Motors will decide by the end of January 2025 if it will participate in the creation of the holding company with no delays expected.

Among what we can expect from the establishment of a single holding company between the brands would be the standardization of vehicle platforms which would accelerate the mutual complementation of their global vehicle offerings–including ICE, HEV, PHEV, and EV models, and the integration of R&D functions enhancing technological expertise.

There is also the optimizing of manufacturing systems and facilities with the shared-use of production lines, operational efficiency improvements through the integration of systems and back-office operations in order to reduce costs, among others.

“Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone,” said Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida.

“Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing. Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams,” said Honda Director and Representative Executive Officer Toshihiro Mibe.

The brands also clarified that this merger is not about saving Nissan, but in order to achieve a common goal to elevate competitiveness between their products and growing rivals from China.