Honda, the second largest Japanese automobile manufacturer, and Nissan, the third largest automobile company, have entered into full-scale discussions with the goal of merging in 2026. Japanese companies, whose market share has declined due to the rise of Chinese companies, are trying to make a new plan.
Honda President Toshihiro Mibe, Nissan President Makoto Uchida, and Mitsubishi Motors President Takao Kato held a press conference in Tokyo, Japan on the 23rd and announced the basic agreement for the merger. Honda and Nissan announced that they aim to establish a new listed holding company in August 2026, and that the two companies will fall under the new holding company. Detailed negotiations are scheduled to be finalized in June next year.
The new holding company is expected to be led by Honda. This is because Honda decided to appoint the head of the holding company. However, the car brands of both companies will not be eliminated but will remain. Japanese automaker Mitsubishi, of which Nissan is the largest shareholder with a 24% stake, plans to decide whether to join the merger next month.
If Honda and Nissan are integrated, they will become the world’s third largest automobile group in terms of sales volume, following Japan’s Toyota and Germany’s Volkswagen. As Chinese companies such as BYD have recently emerged and both Honda and Nissan have struggled, it is analyzed that the two companies have finally decided to raise their game. The two companies predict that they will be able to create synergies in a wide range of fields, including autonomous driving, electric vehicles, and hybrids.
President Mibe said, “We will not only join hands in four-wheeled vehicles, but also integrate a wide range of mobility businesses such as two-wheeled vehicles and aircraft businesses.” President Uchida also said, “If management integration is accomplished, it will be of a scale that will put us in the top class among global manufacturers.”
However, former Chairman Carlos Ghosn, who once led Nissan, predicted at a separate conference held at the Japan Foreign Correspondents’ Club that day, “Honda and Nissan are not complementary to each other,” and “integration synergy will not be significant.”
Reporter Jaehee Han [email protected]
Tokyo = Correspondent Lee Sang-hoon [email protected]
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