It is occurring. Honda and Nissan have signed a memorandum of understanding (MOU) to discover integrating each automakers right into a single new holding firm. If all goes nicely, that firm might launch in 2026. This is what we all know to this point.
For the subsequent few months, a committee established by each manufacturers will take a look at easy methods to finest implement the merger. That features every part from standardization of car platforms to built-in analysis and improvement, manufacturing, suppliers and provide chain wants, finance, effectivity enhancements, and human sources. The present timeline requires a definitive settlement in regards to the enterprise integration to be set by June 2025. The deal would want to go numerous authorities necessities and be accredited by shareholders of each firms, the latter of which is presently scheduled for April 2026.
Photograph by: Honda
The 2 firms have been working collectively for nearly a yr. An MOU (memorandum of understanding) was signed in March 2024 for a partnership on car intelligence and electrification. That was adopted by one other MOU in August to additional increase and solidify that partnership into different technological areas.
It is necessary to notice that this does not eradicate Honda and Nissan as we all know them. Very like Stellantis, a brand new as-yet unnamed firm could be created, underneath which each manufacturers would nonetheless keep their very own identities (albeit with shared components and platforms). From a inventory perspective, Honda and Nissan could be de-listed on the Tokyo Inventory Trade and changed by the brand new holding firm, occurring in late summer season 2026.
In accordance with an identical press releases from each automakers, Honda would maintain a majority position within the new firm’s administration construction.
“At this time marks a pivotal second as we start discussions on enterprise integration that has the potential to form our future,” stated Nissan CEO Makoto Uchida. “If realized, I imagine that by uniting the strengths of each firms, we will ship unparalleled worth to clients worldwide who recognize our respective manufacturers. Collectively, we will create a novel means for them to get pleasure from vehicles that neither firm might obtain alone.”
Photograph by: Nissan
Curiously absent from the joint press releases are Renault and Mitsubishi. Each firms fashioned a strategic partnership with Nissan means again in 1999, and Renault is presently Nissan’s primary shareholder. In a really transient announcement, Renault Group acknowledged the brand new MOU and said it could “take into account all choices based mostly on one of the best curiosity of the Group and its stakeholders.”
Mitsubishi is significantly extra concerned. The corporate introduced it had additionally signed a MOU with Nissan and Honda, however solely to “discover the opportunity of Mitsubishi Motors’ participation, involvement, and synergy sharing” on this new holding firm. A choice ought to come by late January 2025. In November, Nissan introduced it was promoting one-third of its stake in Mitsubishi.
“In an period of change within the automotive trade, the examine between Nissan and Honda a couple of enterprise integration will speed up synergy maximization results, bringing excessive worth additionally to the collaborative companies with Mitsubishi Motors,” stated Mitsubishi CEO Takao Kato. “In an effort to notice synergies and to make one of the best use of every firm’s strengths, we may even examine one of the best type of cooperation.”
If the brand new holding firm passes all obstacles and is accredited by shareholders, will probably be one of many largest automotive conglomerates on the earth. However issues are nonetheless within the early phases at this level.
“Honda and Nissan are two firms with distinctive strengths, ” stated Honda Director and Consultant Government Officer Toshihiro Mibe. “We’re nonetheless on the stage of beginning our evaluate, and we now have not selected a enterprise integration but, however as a way to discover a course for the opportunity of enterprise integration by the top of January 2025, we try to be the one and solely main firm that creates new mobility worth by way of chemical response that may solely be pushed by way of synthesis of the 2 groups.”
