Prompted by the global automotive industry's accelerating shift towards electric vehicles and artificial intelligence (and perhaps in an effort to save Nissan), a merger between Japanese automakers Honda and Nissan has officially been launched. It could eventually involve Mitsubishi Motors, of which Nissan is the largest shareholder.
During a press conference in Tokyo on Monday, December 23, Honda and Nissan CEOs Toshihiro Mibe and Makoto Uchida announced the start of negotiations to establish a holding company by August 2026 that will oversee both groups. Takao Kato, the CEO of Mitsubishi Motors, was also present and indicated that his company might join these discussions in late January 2025.
"We are witnessing a once-in-a-century transformation with the emergence of new players, especially from China, and a new business model. This shift will happen over just a few years, not 20 or 30. By 2030, we want to have the right weapons to compete with the best," said Mibe. "The environment is changing more quickly than expected. We want to move beyond existing collaborations," added Uchida. Kato promised to "study the best form of cooperation in order to create synergies and make the most of each company's strengths."
As specified by the announced timeline, the merger's framework will be unveiled by June 2025 at the latest. Honda will select the president of the new holding company and have a majority of the directors. The goal is to achieve a stock market listing by August 2026. According to their projections, the new entity will generate 30 trillion yen (€184 billion) in revenue and 3 trillion yen in operating profits.
If the merger succeeds, the Honda, Nissan and Mitsubishi Motors group would rival the Toyota-dominated group, which includes Daihatsu, Subaru, Mazda and Suzuki. The Japanese government has approved the project: before the agreement's official announcement, Mibe and Uchida visited the Ministry of Economy, Trade and Industry as well as the Ministry of Land, Infrastructure, Transport and Tourism.
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