Honda and Nissan will team up to protect their future

Honda and Nissan have confirmed their plan to merge to ensure their survival in the auto industry.. The companies announced this Monday that they have signed a memorandum of understanding to create a new company that will serve as the parent company for both automobile companies.

Rumors about a hypothetical merger between Honda and Nissan have been circulating for quite some time. Last week, by the way, there was a report Nikkei showed that an agreement between the two Japanese companies was inevitable. It was then said that the agreement between the parties was aimed at countering Tesla and the rapid expansion of Chinese brands in the field of electric mobility.

When formalizing their alliance, both Honda and Nissan avoided mentioning external factors that influenced its completion. Brands have limited themselves to talking about the potential synergies of this integration and how it will impact some key areas of their business.

In this sense, the companies indicated that the merger would allow them standardize your car platforms scale your production. This will apply to both Honda and Nissan electric vehicles, as well as their hybrid, plug-in hybrid and internal combustion engine models.

Similarly, Honda and Nissan are planning to merge their R&D departments. connect and optimize your factories and assembly linesand, among other things, unify the supply chain to work with the same suppliers.

How will the merger between Honda and Nissan work?

Although Honda and Nissan have signed a new memorandum of understanding for the merger, the process still has some steps to go through. By the end of January 2025, a more definite look at the format of integration between both automakers is expected. There is even speculation that by then a final decision will be made on whether Mitsubishi Motors will join the company or not.

A definitive agreement between both companies is scheduled for June next year, with a shareholders meeting to be held in April 2026 at which the share transfer will be asked to approve the transfer. If the latter gets the go-ahead, a new joint venture will be created to become the parent company of Honda and Nissan. which will become subsidiaries of the said company.

The goal is for the company in question to be formed by August 2026 and listed on the Tokyo Stock Exchange from then on. It is worth noting that the new company He doesn’t have a specific name yet.no confirmed corporate structure. It was confirmed that Honda would appoint a majority of the joint firm’s internal and external directors, and that from these would emerge the core positions of president and representative director.