Honda and Nissan are moving towards a significant merger, having recently signed⁢ a memorandum of understanding‌ to explore ⁢the​ creation of‌ a joint holding‍ company. This collaboration, which‌ began ⁣discussions in March, aims to leverage synergies in next-generation software-defined vehicle​ technologies, artificial intelligence,​ and electrification.⁢ The agreement outlines plans for a committee to identify strengths and potential benefits, including ‌economies of scale through platform standardization and​ enhanced research and ⁣development capabilities. Additionally, ⁢the merger will ‍involve a share⁢ transfer to establish ‌a holding company that​ will oversee both brands, wiht Honda expected⁣ to have​ a​ larger influence in governance. The timeline includes a definitive agreement by June and⁤ unusual shareholder meetings in April 2026, ⁣with ⁤plans ​for the holding company to be listed on the Tokyo ​Stock Exchange by August 2026. Mitsubishi is⁤ also expected to play a role in the discussions, with a decision on its participation anticipated by ⁢the ​end of January.