The potential parent company could become the world’s third biggest automaker behind Toyota and VW Group
- Honda, Nissan, and Mitsubishi have started talks about merging into a single company.
- The goal is to reach an agreement by June 2025, and complete the merger by August 2026.
- The new company could be the world’s third biggest automaker with 8 million annual sales.
Honda Honda and Nissan have officially announced they will host discussions over the next six months about merging into a single holding company. Mitsubishi, already in alliance with Nissan, will also participate in the talks. If successful, the merger could be finalized by 2026, with Honda expected to nominate the majority of directors and the president of the new company. The resulting entity would become a $50 billion company, making it the world’s third-largest automaker by sales volume, behind only Toyota and VW Group.
In a joint statement, the three carmakers announced that the potential merger “is aimed at maintaining global competitiveness and enabling the companies to continue delivering more attractive products and services to customers worldwide.”
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The news follow a difficult period of Nissan which has recently slashed 9,000 jobs and cut 20% of its production capacity. Nissan’s shares saw their value increase by over 20 percent after the initial reports about the merger talks with Honda. The three companies had already announced a partnership for the development of EVs and software in August 2024.
During a joint press conference in Tokyo, Honda and Nissan revealed they have signed a Memorandum of Understanding (MoU) marking the beginning of the merger talks, and will form a special committee to explore the details. A different MoU has been signed with Mitsubishi, that will decide on its participation by the end of January 2025.
The ultimate goal is to reach a final agreement by June 2025. Still, Honda CEO, Toshihiro Mibe, clarified that this announcement marks only the start of the merger talks, adding that “the possibility of this not being implemented is not zero”.
Associated Press reports that Honda will initially lead the new management, with an effort to retain “the principles and brands of each company”. The new parent company is expected to be formed by a joint share transfer, with the ratio that is yet to be determined. If approved by the shareholders, the new entity will be listed on the Tokyo Stock Exchange in August 2026.
After the merger, Honda, Nissan, and Mitsubishi will remain distinct brands, sharing platforms and powertrains across their lineups. Common architectures will reduce costs and complexity, as with a streamlined portfolio of ICE, HEV, PHEV, and EV powertrains. The brands will closely collaborate on R&D and production, while integrating their supply chain network.
In other words, the merger could become the Japanese equivalent of VW Group or Stellantis, with the brands forming closer ties compared to the partnership between Toyota, Suzuki, Mazda, and Subaru. Together, Honda, Nissan, and Mitsubishi have an annual production of around 8 million vehicles, placing the potential parent company in the third place behind Toyota and VW Group. At the moment, it is unclear on how the merger with Honda will affect the existing Renault-Nissan-Mitsubishi alliance.
Statements From The CEOs
Nissan CEO, Makoto Uchida said: “Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.”
Honda CEO, Toshihiro Mibe added: “Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams.”
Speaking about Mitsubishi’s potential participation to the merger, its CEO, Takao Kato, stated: “In an era of change in the automotive industry, the study between Nissan and Honda about a business integration will accelerate synergy maximization effects, bringing high value also to the collaborative businesses with Mitsubishi Motors. In order to realize synergies and to make the best use of each company’s strengths, we will also study the best form of cooperation.”
