Auto expert Mike Caudill joins ‘Cavuto: Coast to Coast’ to discuss the possibility of a merger between Honda and Nissan and how it could impact the brands.
Japanese automobile manufacturers nissan and honda Agreed to consider a merger and establish a joint holding company, which would create the world’s third-largest automaker.
The two companies said in a statement on Monday that they would seek combined sales of $191 billion and operating profit of more than $19 billion through a potential merger.
The companies hope to complete negotiations around June 2025 and set up a holding company by August 2026, when shares in both companies will be delisted.
The merger talks come at a time when both automakers are struggling to compete with the biggest global electric vehicle makers, including Tesla and Chinese automaker BYD.
What could the Honda-Nissan merger mean for the auto industry and consumers?
Makoto Uchida (left), Director, Representative Executive Officer, President and CEO of Nissan Motor Corporation and Toshihiro Mibe (right), Director, President and Representative Executive Officer of Honda, hold a joint press conference on their merger. (Reuters/Reuters Photos)
This merger will create the world’s third largest auto group vehicle sales, Behind Toyota and Volkswagen.
Honda, the second-largest Japanese automaker after Toyota, has a market capitalization of more than $40 billion, while third-ranked Nissan has a market capitalization of about $10 billion.
“Today is an important moment when we begin discussing business integration that has the potential to shape our future,” Makoto Uchida, director, president, CEO and representative executive officer of Nissan, said in a statement. “If realized, I believe that by uniting the strengths of both companies, we can provide unique value to customers around the world who appreciate our respective brands. Together, we can create cars for them “Can create a unique way to enjoy that no one company can achieve alone.”
The Honda-Nissan merger will create the world’s third largest auto group in terms of vehicle sales. (Reuters/Reuters Photos)
Toshihiro Mibe, Director and Representative Executive Officer of Honda, said: “Creating new mobility value by bringing together resources including knowledge, talent and technologies, which Honda and Nissan have been developing for long years, to address challenging environmental changes. Is necessary.” auto industry Have to face.
“Honda and Nissan are two companies with distinctive strengths,” Mieb said. “We are still at the stage of starting our review, and we have not yet decided on trade integration, but to find a direction for the possibility of trade integration by the end of January 2025, we strive to become a And the only leading company that creates new mobility value through a chemical reaction that can only be driven through the synthesis of two teams.”
Honda, Nissan reportedly planning to start merger talks in view of EV competition: Report
Honda and Nissan also agreed to expand cooperation with Mitsubishi Motors. (Reuters/Reuters Photos)
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The board of the holding company will have a majority Appointed by Honda.
The companies are looking for ways to strengthen their partnership, including saying in March they were considering partnering on electrification and vehicle intelligence and in August on fundamental technologies in the areas of platforms for next-generation software. Are announcing an agreement to conduct joint research-defined vehicles.
They also agreed to expand cooperation with Mitsubishi Motors.
Reuters contributed to this report.
