Honda and Nissan are in talks to merge, forming a new automotive giant with the potential to generate 30 trillion yen ($191.4 billion) in revenue and operating profit exceeding 3 trillion yen. The companies believe this integration will provide a competitive edge in developing electric vehicles and intelligent driving technologies. The deal aims to leverage shared intelligence and resources, achieve economies of scale, and maintain the distinct identities of both brands. A holding company will be established as the parent entity, listed on the Tokyo Stock Exchange. Honda will nominate most of the board members. While the integration is expected to be a mid to long-term project, visible progress may not be apparent until 2030. Nissan's strategic partner Mitsubishi has been offered the opportunity to join the new group and will make a decision by the end of January 2025.
If the deal goes through, the merged group has the potential to deliver revenue of 30 trillion yen and operating profit of over 3 trillion yen, Honda CEO Toshihiro Mibe said.Nissan's strategic partner Mitsubishi has been offered the chance to join the new group and will take a decision by the end of January 2025.
Nissan's strategic partner Mitsubishi has been offered the chance to join the new group and will take a decision by the end of January 2025.Honda CEO Mibe on Monday said some of the company's shareholders may feel that the deal would represent Honda supporting Nissan, but noted the merger was"based on the assumption that Nissan completes its turnaround action."
Nissan CEO Makoto Uchida told reporters that the discussion of integration did"not mean we have given up on a turnaround" and was instead about ensuring the company's competitiveness for the future. Nissan has"been struggling in the market, it's been struggling at home, it doesn't have the right product line-up," Peter Wells, professor of business and sustainability at Cardiff Business School's Centre for Automotive Industry Research, told CNBC's"
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