Nissan, Honda and Mitsubishi unveil merger plans

Nissan Motor, Honda Motor and Mitsubishi Motor Corp held a joint press conference today, giving more details about the possible merger.

The move comes as automakers face dramatic changes driven by electrification and shifting market dynamics.

While Nissan and Honda look sure to join forces, Mitsubishi signed an MOU today to discuss their participation in the partnership and decide by the end of January whether they would agree to be part of the merger.

The merger aims to achieve combined annual sales of 30 trillion yen (USD 192 billion) and an operating profit of 3 trillion yen (USD 19 billion).

Nissan, Honda and possibly Mitsubishi hope to conclude talks by June 2025 on the future direction of the merger and plan to set up the joint holding company by August 2026. 

Nissan president Makoto Uchida and Honda president Toshihiro Mibe stressed that this is a long-term plan, and the benefits will be visible in the next five to ten years.

The main focus of the alignment will be to strengthen EV and self-driving technology.

Uchida mentioned that one of the synergies could be Honda’s strong position in the motorcycle industry, which could benefit them. Mibe added that Honda’s strong hybrid technology could benefit Nissan’s commercial vehicle space.

When asked about Renault’s involvement, Uchida confirmed that Renault is not part of this discussion and will continue to work on different projects with them. Similarly, Mibe said the merger does not affect their relationship with General Motors, with whom they signed a partnership in January 2024.

Regarding the possibility that the merger will result in further job cuts, Mibe says everything will become clearer once the talks are concluded. However, that does not mean that layoffs are necessary to achieve the company’s future goals.

Should the three automotive brands merge, they would become the third-largest car manufacturer globally, a rank presently occupied by Hyundai and Kia.