Big news is emerging from the global automobile industry, as two major Japanese automakers, Honda Motor Co. and Nissan Motor Co., may merge. This merger could reshape the Japanese automotive sector. According to a report by Bloomberg, discussions regarding this merger are still in the initial stages. Both companies are exploring options like a full merger, a capital tie-up, or the creation of a holding company.
Nissan Shares Surge by 24%
Following reports of a potential merger between these two giants, Honda’s Executive Vice President Shinji Aoyama confirmed on Wednesday that the company is evaluating various strategic options, including a possible merger. Recently, Honda and Nissan collaborated on EV battery and software projects. Earlier this year, Honda CEO Toshihiro Mibe mentioned the possibility of a capital partnership with Nissan. After the news of the merger talks surfaced, Nissan’s shares surged by 24% in early trading, while Honda’s shares dropped by 3.4%.
Mitsubishi May Also Be Involved
Mitsubishi Motors Corporation could also be part of this deal, as it already has a capital tie-up with Nissan. If the deal goes through, it would divide Japan’s auto sector into two major groups: one led by Honda, Nissan, and Mitsubishi, and the other by Toyota and its allies. This merger is expected to make it easier to tackle challenges posed by Tesla and Chinese electric vehicle manufacturers.
