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Honda Motor and Nissan Motor are reportedly planning to merge by 2026, with talks set to begin this week. According to Japanese media, the two automakers aim to finalize a merger agreement as soon as June. They are expected to form a holding company, led by a president chosen by Honda.
On Monday morning, the presidents of Honda, Nissan, and Mitsubishi Motor Corp. — Nissan’s junior partner — were seen visiting Japan’s transportation ministry, likely to inform officials about the merger talks. However, the executives declined to comment, and spokespeople for both companies also remained silent.
Honda and Nissan eye merger by mid-2026 under holding company #nissan #honda (Video by Suzu Takahashi) https://t.co/rYswYSkRzo @NikkeiAsia pic.twitter.com/dfGZ6vLRD1
— Ken Kobayashi (@KenKobayashi) December 23, 2024
A report from Yomiuri added that the goal is for the two companies to merge in 2026, with the new holding company being a publicly listed entity. Following the news, Nissan’s shares dropped by 2.6%, while Honda’s stock increased by 2.1%, although both companies have seen significant declines in their stock prices this year.
Honda and Nissan are both facing major challenges in the automobile industry. Nissan, in particular, has been struggling with falling sales in the US and China, forcing the company to reduce its workforce and production capacity while lowering its annual profit outlook by 70%.
Earlier, Taiwanese manufacturer Hon Hai Precision Industry Co. (better known as Foxconn) showed interest in acquiring Nissan. However, Foxconn has decided to pause its acquisition plans and wait to see how the talks between Honda and Nissan develop.
This potential merger would create a major shift in Japan’s car industry, as it would divide the market into two main groups: Honda, Nissan, and Mitsubishi Motors on one side, and Toyota Motor, along with its partners Mazda, Subaru, and Suzuki, on the other.
Earlier this year, Honda and Nissan began collaborating on electric vehicle (EV) technologies, including plans with Mitsubishi to co-develop batteries and software for EVs.
