Makoto Uchida (left), President and CEO of Japanese auto maker Nissan, shakes hands with Toshihiro Mibe (right), director, president and representative executive officer of auto maker Honda, after a press conference in Tokyo on August 1, 2024.
Richard A. Brooks AFP | getty images
nissan motor Shares surged on Wednesday media report The struggling Japanese automaker is looking to merge with honda motorCreating a larger entity that can compete with larger rivals and invest more in the growing market of electric vehicles.
Nissan shares last traded up 22%, while Honda shares slipped 1.6%.
According to a report, Honda and Nissan are considering working under a holding company and will sign an MoU soon Nikkei newspaperThey are also considering eventually bringing Mitsubishi MotorsAccording to the report, Nissan is the top shareholder under the holding company with 24% stake.
The merger, if successful, would be particularly beneficial for Nissan, which had previously announced its plans eliminate 9,000 jobs and cut global production capacity by a fifth amid fierce competition in its key markets.
Joe McCabe, president and CEO of AutoForecast Solutions, told CNBC on Wednesday that Nissan needs “revitalization” after its relationship with Renault Went sideways.
“They (Nissan) didn’t really have a leadership position in any of the areas they were competing in,” he said.
In a statement, Nissan said that media reports that it is “considering business integration” with Honda are not based on the company’s announcement. Nissan said it is considering various possibilities for future cooperation with Honda and Mitsubishi, but no decisions have been made. shares of mitsubishi Last time it was up 14%.
According to Nikkei, the joint Nissan-Honda-Mitsubishi venture will equate to more than 8 million vehicle sales annually. This would put the company among the world’s largest automakers, but still rank below fellow Japanese automakers. toyota motorBut 11.2 million In 2023, as well as the German automaker volkswagenwho reported sales for the previous year 9.2 million Vehicle.
The merger report comes after the two Japanese automakers entered into a strategic partnership on shared automotive components and software earlier this year.
Such a tie-up would be the automotive industry’s biggest merger since Fiat Chrysler joined forces with France-based PSA Group. Stellantis In January 2021.
The global auto industry faces many challenges, including the shift to EVs, a category that is dominated by Tesla And China’s BYD. volkswagenFor example, plans to close factories and thousands of jobs cut In Germany, while General Motors recently pulled the plug On Cruise, its self-driving robotaxi company.
For Honda and Nissan, there is also the threat of tariffs proposed by President-elect Donald Trump that could require a massive restructuring of global supply chains.
—Michael Wayland and Kevin Lim contributed to this report.
