► Nissan and Honda to discuss “commercial integration”
► The two already worked together on tech
►’The business environment of the two companies has changed rapidly’

After many rumors and discussions, Nissan and Honda officially announced that they have signed a memorandum of understanding to discuss “business integration”.

The idea has been discussed for a while now, as both car brands face tough times. The two have already worked together throughout 2024, first in the field of electrification, then exploring the topics of software-defined vehicles and much more.

Since then, however, both auto brands recognize that “the business environment of the two companies and the automotive industry as a whole has changed rapidly, and the pace of technological innovation has continued to accelerate.” But these are only discussions: the merger has not yet taken place.

Nissan has been looking for a stakeholder since November 2024, according to the Financial Times, in order to stabilize its activity while Renault – its major partner in the Alliance – sells its share in the Japanese brand. Nissan also had to cut production and lay off around 9,000 employees worldwide due to falling sales. Given Mitsubishi’s attachment to Nissan and Renault within the Alliance, Mitsubishi is also named in the merger.

In a statement, Nissan said: “If business integration can be achieved, the two companies can aim to integrate their respective management resources such as knowledge, human resources and technology; create deeper synergies; improve the ability to respond to market changes; and we hope to improve the company’s value in the medium and long term.

“In addition, Nissan and Honda can aim to further contribute to the development of Japan’s industrial base as a ‘leading global mobility company’ by integrating Nissan and Honda’s four-wheel vehicle businesses and motorcycle businesses. and electrical products from Honda, allowing the brands of both companies to become more attractive and to offer more attractive and innovative products and services to customers around the world.

Makoto Uchida, CEO and President of Nissan, said that if the merger goes through: “I believe that by joining the strengths of both companies, we can deliver unparalleled value to customers around the world who value our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone.

Honda director Toshihiro Mibe said: “We are still at the beginning stage of our review and have not yet decided on a commercial integration, but in order to find a direction for the possibility of an integration commercial by the end of January 2025. , we strive to be the one and only leading company that creates new mobility value through a chemical reaction that can only be generated by the synthesis of the two teams.

The two companies highlight several advantages to merging. Both brands say this will improve economies of scale by sharing car architectures and reduce costs by streamlining R&D. The announcement also presents potential benefits to “optimize” their manufacturing and remain competitive in the market. The latter point is likely due to the growing number of Chinese automakers increasing their market participation with competitive products – something Nissan and Honda, at least for now, have not had despite both brands being pioneers in electrification and technology. .